New Delhi, July 28 -- Exceeding your credit card limit can result in hefty penalties, higher interest rate charges, stricter repayment terms and a sharp decline in your credit score. Given comfort and convenience may seem tempting, still breaching the limit can result in financial chaos and economic turmoil. Here's why it is important to stay within your sanctioned credit card limit and avoid over limit charges.

The over limit charges are becoming increasingly common across the nation. Credit card issuers levy fines ranging from Rs.500 to Rs.750 for each breach while some banking institutions charge 2-3 percent of the over-drawn amount.

Axis Bank, ICICI Bank and HDFC Bank apply both fixed and percentage based penalties. These charges ar...