What happens when a credit card is maxed out?

Question

What happens when a credit card is maxed out?

Answer 1

what happens is that you are likely on the verge on bankruptcy. When you can't get more credit, and you have no money, that's a bankruptcy condition. Guaranteed.

You have likely been totally irresponsible in your credit card useage, and the credit company realizes this. What they will do is typically the following.

1. if you have been totally irresponsible, and racking up tons of debt but have been a good "sucker" from their point of view by making only the minimum payments each month on a regular basis..." EG you have GREAT credit" then they will typically increase your limit without even telling you, so that you will borrow more and more, and get even further into debt!!!

2. If you have been deliquent on payments in the past, or don't have much history with them you might have to apply for a higher limit. You will likely be declined the first time you apply.

Answer 2

If you attempt to purchase something else with it, it will be denied.

If you repeatedly max out credit cards, it may damage your credit rating.

Answer 3

you will affect your score due to high usage and will not be able to purchase ant more until available credit is available. You will also have to add on finance charges it is not a 0% offer and they go on top of the charges which cause you to go overlimit. You will then get an overlimit fee and be on bad terms with the bank.

Answer 4

The next charge you try to make will be denied.

If you can pay your bill now, before it is due, you can reinstate your charge limit.

Or, if your credit history is good, you can call the company and ask to have your limit increased.

Answer 5

They will not let you charge more, but you need to take care of this matter as soon as possible.