What happens when you max out a credit card?

The credit limit is $500 dollars and its maxed out. Do I have to pay fees and all? Will I be in debt?

4 years ago - 11 answers

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When you max out a credit card you have a debt to pay. You should avoid using your card again until you have made a payment. You will be charged interest if you do not pay your account off in full. Making the minimum payment on your credit card means more money for the credit card company. The slower you pay your card off the more money you will lose. If you continue using your card while it's maxed out and a charge goes through, you will have to pay a fee for exceeding your credit limit. $500 is not a lot of debt but you will need to be careful or it could easily balloon into $1000 or more.

4 years ago

Other Answers

Pretty sure it declines.

by sarahp - 4 years ago

It depends on the terms of your card. Some cards do have "over the limit fees". Some cards will not let you continue to charge items, others do.

Yes, you are responsible for paying everything you charged plus any fees and interest you agreed to when you signed up for the card (and all the modifications since then that they mail out).

by Belle - 4 years ago

If the card is maxed out then you are in debt. You are at least $500 in debt. You have to pay back the $500, interest on that money, and yes, any fees that your credit card company places on the card. All of this should be on your credit card bill.

by Loca Loba - 4 years ago

You are definitely in debt by the amount you owe the credit card company.

by Sharon T - 4 years ago

Yes you might need to pay other fees such as over the credit limit fees plus interest if you don't pay in full. But the most important things that you need to worry about is your credit rating and your ability to pay that money back and on time. Because when you use more than 30% of your credit limit your credit score goes down and if you don't pay back the money and on time your credit that will also affect your credit.


The main thing that happens is that you can't use your credit card again until you have paid off at least part of what you owe. If you try to use it at a store it will be refused.

by DON W - 4 years ago

You are currently in debt. You owe the credit card people money, right now.

Yes, you will have to pay fees and interest. A credit card is not free money. You have to pay it back, with interest and any fees that you agreed to, even if it wasn't maxed out.

Depending upon your credit card agreement, your card could be declined if you attempt to use it. You could be allowed to charge additional amounts to it, but be charged an over-limit fee. The card company could also increase your interest rate up to the default rate (usually around 35-40%) because you have reached or exceeded your credit limit.

Your credit score will also go down. A big chunk of your credit score is credit utilization, or how much of your available credit you have used. If you have maxed out your credit cards, then you have utilized all of your available credit - this is interpreted as a bad thing by the credit rating agencies.

by Jamie - 4 years ago

Well, you can't charge anything else until you pay some of it off. If you went a little OVER the limit, yes they'll charge an extra fee for that. And if you don't pay the whole balance with every statement, they'll charge interest.

by Judy - 4 years ago

if you carry on using your card you will be charged. but i you pay $5 more than the minimum repayment every month 4 three months and make no further transactions you will have a credit limit increase no matter how bad your credit is

by Ryan - 4 years ago

Your interest might put you overlimit and result in a fee. You will definitely be charged interest if you don't pay the balance in full.

Carrying balances of more than 30% of your limit, hurts your score. Maxing out the card, kills your score. Pay it off and your score immediately rebounds.


by bdancer222 - 4 years ago