What happens if I go over my credit card limit — can they charge an over-limit fee?
Last updated: 2026-07-12 · Educational content; not legal advice.
Short answer
If a new transaction would breach your credit limit, RA 10870 §14 leaves it to the issuer's discretion whether to process it — the bank may approve or decline the over-limit charge. If it approves and imposes an over-limit fee, that fee is lawful only if it was disclosed to you in advance under the issuer's disclosure duty (§11) and the BSP rule requiring notice before it changes the fees it imposes; and any over-limit finance charge is still bound by the 3%-per-month ceiling under BSP Circular 1165 (2023). If an over-limit fee appears that was never disclosed, treat it as a billing error — you have 30 days from the statement date to dispute it in writing (RA 10870 §18) and can escalate to the BSP.
Primary sources
Frequently asked
Will an over-limit purchase always go through?
No. Under RA 10870 §14, processing an over-limit transaction is at the issuer's discretion — it may approve or decline the charge. There is no guarantee the purchase will be allowed.
Is an over-limit fee legal?
Only if it was disclosed in advance under the issuer's disclosure duty (§11) and BSP notice rules. Any over-limit finance charge remains capped at 3% per month under BSP Circular 1165 (2023).
An over-limit fee I was never told about appeared — what do I do?
Treat it as a billing error. Under RA 10870 §18 you have 30 days from the statement date to dispute it in writing; if unresolved, escalate to the BSP.
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