I unknowingly went 00 over my credit card limit, how do I fix it?
I got a RBC Visa in Canada which I continued to use trusting that I could never go over my limit (except maybe 0 over as stated by a teller to me when I asked why was I able to go 00 over).
So my issue is: I need to use my card for travel but I cannot afford to pay 00 just to get back down to my limit and then pay another 00 just to use my card for my needs.
The teller refused to raise the limit so I can use my card sooner. What can I do? Anything to convince a manager? Another thing is I can't raise my limit the usual way as I do not qualify.
(9)9 Comments
Sorted by latest first Latest Oldest Best
Unfortunately, this is a customer service issue. The bank has a set of term and conditions (Ts and Cs) which you received with the card or when you applied. It included your limit, and what happens when you go over, likely, a penalty for going over the limit. At the very least, they expect you to pay the overage or you'll see an over-limit charge next cycle too.
In the future, I'd suggest checking your account on line to monitor your balance. Some accounts offer an alert email, mine will let me set an alert for when my balance goes over $xxx, which is helpful, as I can send in an early payment to bring that balance down.
It still never hurts to ask. They might waive fees if any, if this is your first time. You can still try calling them, explain the odd timing, and see if you can get a temporary increase in credit line.
In the end, you need to review your finances. Carrying balances month to month at 12-18% is no way to have a successful financial future. It's one of the first things to getting your situation under control. After that, a small savings account, an emergency fund, is the next step. One month of charges should never put you in this bad situation.
One possibility is to ask RBC to lend you some money (or more specifically, to lend you some more money): an overdraft, a personal loan, or whatever.
To discuss this you should to talk to your personal banker (not a teller), probably by appointment: to explain why you want it, and how and when you expect repay it.
You might (I don't know) say that you want the loan (or some of the loan) to pay off the Visa, and/or for the travel.
If you've only just arrived in Canada, however, then I don't see why they should want to lend it to you (i.e. why they should think you're a good credit risk). Is there anyone else (e.g. an immigration sponsor or parent or employer) who might co-sign (a.k.a. guarantee) the loan?
I have never had this issue before with any other credit cards but I got an RBC Visa in Canada
In some countries (not Canada) a Visa behaves more like a debit card, i.e. you can only spend money you have in the account.
Everyone is telling you how to manage your finances, good for them that's not an answer to your question. The real answer solves how to get your money to travel. The bank likely might extend you a loan especially if you have assets greater than the amount borrowed.
However, a better solution (or alternative if the bank's rate are too high or they simply won't give it to you) is to go to a P2P lending platform these are copious in the UK and US. If I remember correctly there was a Canadian platform called CommunityLEnd or FinanceIT. The point here is this: Go borrow money at a lower rate than your credit card (there are other alternatives than P2P, you can google these, just make sure the rate is lower than your credit card). Pay the card off, and go on vacation just make sure you can pay it all off eventually otherwise you'll be swimming in debt you cant pay.
Sounds like you are stuck. These are your options:
increase limit
Not going to happen. You said you don't qualify. You also won't convince them to let you access more borrowing power by arguing that you can't pay now. No responsible lender would take that bet.
negotiate balance
Unlikely. This sounds like mostly real debt, not fees. They generally won't write off real debt except if you are in default. They will only negotiate if they think you can't pay. Note that this will probably hurt your credit, as they will report that you didn't pay your debt.
pay down balance
This is your best and only real option. If you can't afford to pay down the balance you can't afford to borrow more.
I am sorry for your situation; it is frustrating. I know how that feels. It is a textbook example of the risk associated with debt. Even if you plan to pay the balance every month, when the unexpected happens, you pay the price.
Credit card limits are, for the most part, soft limits; sometimes, a credit card will allow you to charge a little over your limit. The large amount they allowed you to go over your limit is unusual, but not unheard of.
It is your responsibility to keep track of how much you charge on your credit card, not the bank. Just like with a checking account, you are supposed to keep track of everything you charge so that you always know how much you have spent and can pay it off.
Raising your limit will not help your problem; it would only make it worse. You have already charged more than you can afford, and they have already effectively raised your limit by 00.
I realize that this situation is tough, but fortunately, you have a learning opportunity here. I recommend you resolve to stop using the credit card in this way, and work toward paying off your debt to zero. At that point, treat your credit card as if it was a debit card, and only charge what you already have in the bank to pay off right away. (Or, just use a debit card and get rid of the credit card.) Learning to do this now will save you lots of money in interest.
If you don't learn to do this, you will find yourself in even more debt in the future, and it will be even harder to dig yourself out.
If you need some more help on getting out of debt and learning to budget your money, I recommend the book The Total Money Makeover by Dave Ramsey.
Unfortunately, the only thing you can say is "Here have ,200." You need to start living inside your means. If you are not making as much money as you once were, then you need to stop spending money.
You should cancel your travel, and really look at your expenses to see what you can cut. You need to pay off the entire credit card then decide what you wan to do with it.
You should never spend more on a credit card then you actually have in the bank. If you have a credit card with a 0 limit and in the bank, feel free to spend , but under normal circumstances, you should not spend the other 0 as you do not actually have the money.
I recommend using "envelope budgeting" like yNAB, to get your expenses back to an amount you can actually afford to pay, and to pay off this debt as fast as you can, even though it may mean ramen noodles for a while.
Credit is not free money. The idea is you will repay all of it, within a reasonable amount of time. It is abundantly clear you either don't really understand this concept or completely failed at planning for it. Or even at keeping up with how much you owe - you are curiously blaming the bank for letting you go over the limit. The reason most banks will authorize that for credit customers is they don't want to strand people in some sort of an emergency situation.
I'd recommend you cut back on your spending and work on paying the balance down. If you have been charged any over the limit fees you can attempt to negotiate getting those credited. Most banks will compromise on that the first time.
I don't really recommend it, but if there are some circumstances surrounding this that are temporary and you are very confident about being able to manage money better in the future - chances are you might be able to get approved for another card. If you otherwise have had some good credit history and this situation is very recent, it may not even show up on your credit report yet and another bank might happily approve you. They may even offer a low or zero interest (for some time) balance transfer deal, which you should use to get the other card within the limit.
If that ends up working, it's very important that you keep in mind having dodged the bullet once doesn't mean you will ever be able to do it again. Get your budget in order and pay things off.
Get a debit Visa Card and load it up. Be aware you may not be able to use it for check in. You could then use the maxed out card to check in, but pay with the debit Visa. You will still need to be solvent, you are still going to need to pay as you go.
Several answers already addressed the issue that you wouldn't want to get into this situation in the first place, but looking forward the problem is that you want to spend 2000, whilst you don't have it (or at least not 3200).
Besides finding a way to get more loans/credit than you already have, you can consider whether you could survive without spending the 2k in question.
If your trip is for work, ask your boss/client to front your expenses
If your trip is for a critical life event (funeral, wedding of direct relative), consider asking relatives for help (money, accommodation, transportation...)
If your trip is for pleasure, either get a better job so you can afford it (or at least get credit for it), reduce your travel budget, or cancel it. You may even be able to get some costs back like hotel bookings.
Depending on where the money went, you may even be able to get back a significant part of the 3200 by returning made purchases.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2025 All Rights reserved.