What Happens If You Max Out a Credit Card?

If you max out a credit card (use all, or almost all, of your limit), new purchases may get declined, your credit utilization becomes very high, and your credit score can drop.

If you go over your limit, you may also be charged an over-the-limit fee (depending on your card and the situation).

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Why Maxing Out Can Hurt Your Credit Score

Credit scores look at how much of your available credit you’re using.

That’s called credit utilization. When your card is maxed out, your utilization is close to 100%, and that can pull your score down.

A common guideline is to try to stay below 30% utilization (lower is usually better).

What You’ll Notice Right Away

Purchases may be declined

Even if you’re only a few dollars from your limit, some transactions can fail. This is common with tips, holds, or delayed posting.

You may get an over-the-limit fee

If your balance goes over your limit, some cards charge an over-the-limit fee.

Also, federally regulated financial institutions can’t charge this fee in certain situations, like when a merchant’s temporary hold pushes you over the limit.

You could pay more interest

If you carry a balance, interest keeps building until you pay it down.

How to Fix It Fast

• Make a payment as soon as you can. Even one payment can free up room.

• Stop using the card for a bit. Focus on paying it down.

• Set up balance alerts so you know before you hit the limit.

• If you’re consistently close to maxed out, consider applying for a limit increase (only if it fits your budget).