Well, I went and did it. I checked online and saw that it was on sale for $100 less, plus delivery rebate, plus 6 months 0% financing, so I headed down to the store. As I expected, I was turned down for the Plus account (in front of a witness, of course), but my card was authorized for the full amount. Now I'm overlimit by about $125.00. I don't see anything about an overlimit fee in my cardholder agreement, but will they require me to make up the difference on my next bill? Has this ever happened to anyone? Thanks!
I'd be leery of going over the limit regardless. Your cardholder agreement may not have addressed this issue, but CCs routinely amend it in their favor. You can call to find out for sure. But if not, make a payment ASAP to bring you under the CL.
I would make a payment today for the $125.00. Some credit cards and loan accounts "JACK" your rate when you are LATE...but can also "JACK" your account for over-limit too...
Rina, Yes ,they do. Here it is from Sears Card Agreement:- You agree not to exceed any available Credit Line established by us. You agree to be responsible for all charges made on the Account whether or not they exceed your Credit Line Ron.
Ron, you forgot the middle part: "We may authorize purchases or transactions that exceed a Credit Line." Still doesn't say how overlimits are HANDLED (i.e., immediate repayment, etc.)
Even if you got 0.00% + NO payment for 6 months...the first bill would be for the $125.00...I ASSUME...(if they don't make you pay it NOW)...
Sears allows you to go over the credit limit with no problems. I bought all my applicances there and took advantage of the 0% offers. It was not a problem, not fees, no large payments were required to bring it below the limit. The only negative effect it had was the utilization ratio in the FICO score. But there were no negative effects from sears.
I just called Customer Service and asked about my account. She said that nothing will happen, that they don't charge overlimit fees, and that I will continue to get a bill every month showing my balance, but still no payment due. After I start making payments in July, my available credit will begin to show again when I drop below my limit. the other: thanks for the reply. That's what I was looking for, someone who'd been there. {EDIT} DaveLV: that was cute! Seriously, I can't wait for the kids to get out so I can get one of those 'over the stove' (there's that word again!) microwaves. I'm afraid one of them will set themselves on fire reaching over the gas.
PaychDoc, Exceeding credit limit may hurt credit rating and may have less chance to get credit increase. I alwayas called them to get limit increase before I made a big purchase to avoid overlimit. Some bank may charge overlimit fee or denied purchase approval. Ron.
Ron, that's true in practically every case -- except for Sears. Sears either: a) denies the transaction, or b) accepts it. Calling in advance will indeed increase the chance of acceptance. However, if Sears does authorize the overlimit transaction, they will not inflict any penalty whatsoever. This differs from practically every other card issuer out there. Doc
Doc, That may be so, but why put yourself in a position that may weaken future negotiations/disputes?
Rina, I believe that Sears encourages large purchases (especially those involving home improvement) even when such transactions are overlimit -- especially when arrangements are made in advance. This doesn't harm the cardholder with respect to future negotiations or disputes. In fact, we've seen Sears simply increase the available line of credit at times to match the home improvement purchase, even when that increase is substantial. It's weird, I realize, but true. Too bad most bank cards aren't so accommodating. (Basically, given their high APR and incredibly low required minimum payments, I think Sears enjoys the "borrower is servant to the lender" adage.) Doc
I agree doc, my fiance still got a limit increase even though we had gone over the limit. As long as we paid on time, they really didn't care.
