How to Avoid Credit Card Over Limit Fees

• Credit limits

Credit issuers can no longer automatically enroll you in over-the-limit protection programs that charge fees for letting you borrow more than you have been approved to borrow.

So when a purchase exceeds your credit limit, your card will be declined. As embarrassing as that may be while you are standing at a cash register, it might keep you from spending more with a credit card than you can afford to pay back.

Credit card issuers do have the option of letting you borrow more than your credit limit in exchange for a fee, but the new law only allows them to charge only one over-the-limit fee in a billing cycle.

If you choose to use this option, you need to know how much you'll have to pay for that service. It won't come cheap.