Axis Bank credit card over limit consent – What does it mean?

We may often need a higher credit limit on our Axis Bank credit cards. Maybe we want to buy something or pay through a credit card. But in such scenarios, increasing the credit limit doesn’t always work. This is where the Axis Bank credit card over limit comes into the picture.

While using a credit card over the limit, you will be asked for Axis Bank credit card over limit consent. So what is it all about?

Let’s find it below.

What is Over Limit?

Overlimit refers to exceeding your credit limit. All credit cards have a set limit on the amount you can borrow. However, if you make transactions higher than your existing credit limit, you will use an over limit.

When you hit the over limit, transactions are often declined. However, banks like Axis Bank also give you the option to temporarily increase your credit limit for a fee. As a result, you can access extra cash in emergencies. However, this doesn’t permanently increase your credit limit.

What is an Axis Bank credit card over limit consent?

Axis Bank credit card over limit consent is an agreement that allows you to spend more than your credit limit on a single transaction. As a result, if you want to get a higher credit limit and spend on multiple things, that won’t be possible.

Additionally, it only temporarily increases your spending power, and the Axis Bank credit card over limit consent is a one-time authorization for a specific purchase.

However, you should know that the bank has the right to approve or deny your request to use over-limit credit. The approval will depend on their internal eligibility criteria.

On top of that, exceeding your credit limit comes with heavy fees. Plus, using more than your credit limit raises your credit utilization ratio significantly, leading to a bad or reduced credit score, which will become a red flag for banks or credit card issuers in the future.

However, many factors can influence your overall credit score, such as how much you have used under your limit and for how long.

What is an Axis Bank credit card over limit fees?

As far as the fees for using an overlimit are concerned, if your outstanding amount exceeds the credit limit, an overlimit fee of 2.5% of the over-limit amount will be levied. A minimum fee of Rs.500 will be charged for using the overlimit. However, this fee may increase further depending on how much you have used under the overlimit.

The good part is that within the grace period, if you pay your Axis Bank credit card bill, including the over limit you have used, you will not be charged additional interest. However, if you convert the transaction to an EMI, you must pay further charges.

axis bank cc over limit update

Can I spend more than my credit limit Axis?

Depending on your credit history, you might be able to spend more than your credit limit on your Axis Bank credit cards. In most cases, the offer will be available within your credit card management app or website. However, if you don’t see such an option, it’s better to contact Axis Bank credit card support to get more clarity on this.

Do credit cards charge for over limit?

Depending on your credit card, you will be charged for using an over-limit. For Axis Bank credit cards, a minimum overlimit fee of Rs.500 is charged. However, depending on your over limit usage, you must pay a 2.5% fee on the amount you use under the over limit.

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