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Almost all credit cards have a credit limit. Credit limit is nothing but a fixed amount on a card beyond which card holder cannot spend. In certain cases the cardholder is allowed to spend beyond the limit but is charged additional for the amount spent. If this happens it could prove to have very costly effects. There are different ways in which the lender can charge the card holder and none of the methods actually help the consumer. The bank is allowed to charge over-limit fees per month depending on the credit limit. Some companies exceed the credit limit on the card so that the over-limit fee is balanced and then charge the customer on the new credit limit. It can get really confusing for an average person who does not understand the way credit card companies work.

In order to avoid being caught in the vicious credit card mess you can follow some very easy methods. Not many consumers know about the Opt in facility that is offered by the bank. What this means is that the bank cannot charge you the over-limit fee. This is because any transaction that you make that goes beyond the credit limit would be declined. It always helps to know your credit limit from time to time. Look over your billing statements and check if there has been any increase or decrease in the credit limit. Most banks do not inform consumers when then raise their credit limits.

Check with your card company of they offer regular SMS alerts. Most companies offer this service for free and send alerts every the card is used. They even SMS the balance on the back at specific time intervals. Enrolling for balance alerts can help you keep a tab on where and when you are spending with your card. Keeping the card balances to as low as possible is a good way to maintain a good credit score. If the credit card balances are to a minimum it gives you a good opportunity to spend that money in case of any emergencies.

Checking balances from time to time will not only help you know the credit limit but will also prevent you from making any unnecessary purchases. If you are unsure of your balances call the customer service number printed at the back of the card. Most of these numbers are toll free and easily accessible from anywhere.