What does Overlimit Fee mean?
An overlimit fee is required by the credit card issuer whenever there is a step-out of the admitted credit line. Most of the times nowadays one is not denied a transaction when that respective purchase throws you over the limit, but instead there is a fee payable. This is a more convenient solution for the credit card issuers, than to have you not spending over the limit. In order to try avoiding these overlimit fees, you should consider making every month not only the minimum required payments, but sometimes make overpayments as well, because that will bring you back on track for the moment and you will be able to better track your financial situation like that.
An over the limit fee nowadays is close to $40/ billing cycle so this is yet another reason to think over your spending habits. Last, a very important aspect pertaining to the use of credit cards in general is that you always have to know what your limit is; otherwise you will be caught up in the whirlpool for a long time.