What are the consequences of exceeding my credit limit?

Exceeding the credit limit on an Orchard Bank credit card can lead to several consequences that cardholders should be aware of. Firstly, the cardholder may incur over-limit fees, which can add to the overall cost of using the card. These fees may vary in amount based on the specific terms of the credit card agreement. Secondly, exceeding the limit can negatively impact the cardholder's credit score, as credit utilization is an essential factor in calculating credit scores. A higher utilization ratio can signal potential risk to lenders. Additionally, when the credit limit is surpassed, charges may be declined, preventing the cardholder from making purchases until the balance is brought back within the limit. It is also essential to note that repeated over-limit behavior can lead to stricter terms or even account closure. To avoid these situations, cardholders are encouraged to monitor their accounts regularly and be aware of their spending patterns. For more details, individuals may want to visit the official web page for accurate information regarding their accounts.