Definition: An over-the-limit fee is charged when you exceed your credit limit through purchases, fees, or finance charges. The fee usually only applies to revolving credit. Over-the-limit fees can be tough to get rid of, especially when you make the minimum payment after exceeding your credit limit. That's because the minimum payment will decrease your balance just below the credit limit leaving no room for the finance charge that's coming later in the billing cycle.
Alternate Spellings: over-the-limit fee
