Why aren't credit card companies glad when you have to go slightly over your limit? they get ex

your bill comes. I had to go over by 鎷? but I will be clearing the entire debt when the bill arrives including a 鎷?2 over the limit penalty, so they can hardly regard me as an irresponsible customer

Why aren%26#039;t credit card companies glad when you have to go slightly over your limit? they get extra money when

You may not like the answer...it isn%26#039;t that they aren%26#039;t glad, I%26#039;m sure they appreciate the extra GBP%26#039;s you are sending. The issue is that you have exceeded your contractual limit. They are theoretically, at least, taking on more risk than they want. So, to make sure that cardholders do not exceed the limit they make it painful. I%26#039;ve had it happen and I didn%26#039;t like it either

Why aren%26#039;t credit card companies glad when you have to go slightly over your limit? they get extra money when

Secretly of course they want you to go over the limit, because they can charge all types of fees, and your interest rate could go up because of that.

Why aren%26#039;t credit card companies glad when you have to go slightly over your limit? they get extra money when

Better to stick to the limit and avoid the penalty.

Why aren%26#039;t credit card companies glad when you have to go slightly over your limit? they get extra money when

it raises the risk you might not be able to pay all the debt you owe and eventually, they might have to write off some profit due to bad debts

Why aren%26#039;t credit card companies glad when you have to go slightly over your limit? they get extra money when

They set the limit as to what they feel with your personal financial situation you are able to repay, therefore if you exceed this limit there is a risk you will become a bad debt to them as you may not be able to pay back your debt.

They therefore impose the penalty for exceeding it for two reasons. Obviously to generate more funds for there profit as a regard for taking this risk but secondly and the one they will quote if confronted with this question is that they impose it to deter people from exceeding the limit as they do not wish to incur the penalty.