Overlimit On Credit Card

[malagabob]

I have had and been using my Santander 123 credit card for a few months, and it has been declined on several occasions over that time.I assume that the new purchase would have taken it over the credit limit.
I have opted to pay the balance in full.
I have just had a penalty for going over the limit, can anyone explain.

[Old_Geezer]

Does it show you went over in the statement ? No expert, I returned my credit card when they started to demand an annual charge, but I'd suspect the charge is for having to decline your purchase ?

[factor-fiction]

I assume it's in the terms and conditions. The charge has to be a reasonable reflection of the costs to them of having to block a transaction, write to you, etc, so something like £10-£15 would probably be reasonable. If it's more than that then it seems excessive and you could challenge it. How much have they charged you

[bhg481]

Suppose you have a £1000 credit limit.
In month 1 you spend £900 and you get a statement to that effect. You pay your balance in full BUT NOT FOR A FEW WEEKS AFTER THE STATEMENT DATE bacause the credit card company give you a few weeks' notice of when the payment is due.
You carry on spending, say £200 more - your balance is now -£1200 because your payment hasn't been taken yet. You are over your credit limit.
Does this explain it to your understanding?

[bhg481]

Sorry, balance is -£1100 after your second spend.

[beso]

Tell them to shove it.

[factor-fiction]

I read it that malagabob understood he had gone over his limit but his query was whether there should be a charge/penalty. I thinks it's an admin fee rather than a penalty

[factor-fiction]

I think the account terms and conditions need to be checked first, beso. There's no harm in asking for the charged to be waived on this first occasion though

[bhg481]

I thought he couldn't understand how he could have gone over his credit limit when he pays off the full amount every month.

[factor-fiction]

Maybe I misunderstood then.
If malagabob is asking why the payments are being declined then it is indeed because the payments aren't taken into account until they have been paid. Just because someone opts to pay in full doesn't mean that the card company will assume it will be paid on time

[bhg481]

If my scenario is the correct reading of the question, it could be worth writing to the credit card company and explaining the misunderstanding - they just MIGHT refund the charge on this occasion.

[malagabob]

Thanks to all for your replies.