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Know your limit

Every credit card issued has a spending limit.

This is the amount of money you are able to borrow on your credit card. Check your monthly statement to see what your limit is as it can be altered without your knowledge.

Most credit cards offer additional benefits like the Tesco credit card. You can earn Clubcard points with every purchase. These can be redeemed for a wide range of special offers and exclusive deals and more.

How to stay within your spending limit

  • Track all your purchases on your card - Keep a list of what you buy every month. You'll not only stop yourself from exceeding your limit but you will also be keeping an eye on your spending.
  • Budget wisely - If you budget wisely and live within your means, you shouldn't exceed your limit. If you are exceeding your limit regularly, you need to stop and take a good hard look at your spending habits.

What to do if you have gone over your credit limit

  • Call your credit card company immediately.
  • If you this is the first time you have gone over your credit limit you could ask the company to waive the fee.
  • Ask for a higher spending limit.

This is only a good idea if you can afford it and if you manage to pay off the outstanding balance on your card every month. However, if you carry a balance every month, a higher limit will only increase the amount of interest you have to pay. Credit cards with a high spending limit can land you in heavy debt if you're not careful.

It is tempting to live beyond your means when you have a large credit limit on your card. However, if you fail to meet your monthly payments, you could incur penalties.

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