When it comes to credit cardsone of the most important aspects to be known, and often underestimated, is the ceilingor the maximum spending limit. But what does this term really mean? How is it renewed? And what can be done if, for various reasons, it wasn’t enough? We see.
What is and how it works
The ceiling is the maximum roof within which you can spend with your credit card, both for purchases and for withdrawals. Can be daily or monthlyand varies according to the type of paper and the contract signed with the issuing institution. In simple words: it is like a “ceiling” beyond which you cannot go.
For traditional credit cardsthis limit is reset automatically every monthafter the debit of the statement, thus restoring the customer’s spending capacity. For i cash withdrawalson the other hand, there may be a ceiling specificoften lower than that for purchases.
Ceiling and types of paper
The concept of use limit applies, with different waysalso to others Types of cards:
Debit cards: the limits depend both on the availability on the current account, and on the ceilings provided for in the contract (for example for daily withdrawals or payments);
Prepaid cards: The spending threshold is linked to the amount loaded on paper. Some prepaid also include a maximum limit of annual top -ups;
Revolving cards: In this case there is a trusted person who is refunded in installments, with interests. The ceiling is gradually reconstituted according to the reimbursements made.
Possible increase and overrun
If the need to increase the spending limit expected, it will serve The bank’s ok or of the paper broadcaster. Sometimes a simple request may be enough, other times they may be requested justification documents (like the paycheck). The increase can be temporary (to face, for example, an extraordinary expenditure or a trip), or permanent.
If the request comes rejectedyou can think of supporting your credit card a prepaidin order to have two distinct ceilings. Likewise, you can also ask to Reduce the paper limitperhaps to keep the monthly expenses under control.
Regarding the fears of breaking of the ceilingthat is it cannot happensince every time you try to make a transaction, the system checks if there is still availability, otherwise, the expense comes automatically blocked. This also applies to recurring charges such as bills or subscriptions: if the ceiling is already exhausted, the payment will not be successful.
Car and gold cards rental
The ceiling can become a problem in particular situationslike car rental. Here companies often require one Charger deposit which is “blocked” on the ceiling. If our card has too low a limit, you risk not being able to complete the operation.
For this reason, many people prefer cards with more generous ceilinglike the gold or platinum cardswhich however require higher income and credit reliability requirements. Then there are cards that do not have a fixed limit, but adapt to the spending capacity of the customer, assessed month by month.
Some more advice
It is important to always read carefully the information document of your own card, to know exactly limits, conditions of renewal of the ceiling and associated costs.
And well also keep in mind that the annual fee can be reset If you reach one minimum spending thresholdbut also that, otherwise, it will come charged even if the card has never been used.