What might happen if a borrower exceeds their credit limit?

When a borrower exceeds their credit limit, it is likely that they could face fees or have transactions declined. Exceeding a credit limit typically triggers penalties from credit card issuers, which may include over-limit fees. Additionally, after reaching the limit, if the borrower attempts to make further purchases, those transactions might not go through, especially if the credit card issuer has strict credit limit policies.

This situation serves as a cautionary tale for borrowers about the importance of managing credit responsibly to avoid unnecessary costs and potential disruptions in their purchasing ability. Understanding the consequences of using credit wisely, including adhering to limits, is a key aspect of maintaining financial health.