How does the emergency credit card limit work?

In this text you will discover how the emergency credit card limit works, the advantages and disadvantages of this service and much more!

Have you ever made a purchase, but the amount exceeded your credit limit and it ended up being denied?

I can imagine the embarrassment, after all, this is very common and has happened to most credit card holders.

To avoid this type of situation _ not only because of this, and so that you can take your complete purchase home, some card issuers provide a emergency limit. 

As the name suggests, this service is very useful in times of emergency, however, it must be used with great caution.

In today's text you will discover What is the emergency credit card limit and how does it work?

In addition, you will discover the advantages and disadvantages of this service and some credit card options that it offers.

Don't miss it! See the post index below:

• What is an emergency credit limit?
• How does it work?
• What is the emergency limit?
• How much is the fee for this service?
• Advantages and disadvantages;
• Best credit card options with emergency limit;
• 1. Will Bank;
• 2. Santander;
• 3. Banco Pan;
• 4. Digio;
• Conclusion.

What is an emergency credit limit?

THE emergency credit limit, also known as emergency credit assessment or overlimit, is a service that card issuers make available to some of their customers.

It is used when the fixed credit limit is exceeded. In other words, when you have no credit on your card, you can use the emergency limit to pay for purchases.

It is a great option for a moment of urgency, when an emergency has arisen and you were caught by surprise.

How does the emergency credit limit work?

This may depend on your credit card. Some already offer this service automatically, but you can disable it in the app.

However, there are alternatives where it is necessary to request and undergo an evaluation, if the analysis is approved, you will have the limit available.

If you already have a pre-approved limit, there's no problem. Make your purchases as normal. If the amount exceeds the normal limit on your credit card, the emergency limit will come into effect and your purchase will be approved.

However, your purchase cannot exceed the emergency limit, otherwise it will be refused anyway.

When paying for the extra limit, a fee will be charged by the bank that issued the card. This fee should only be charged when the service is used.

What is the emergency credit card limit?

Generally, the emergency limit is R$101,000 of your credit limit. In other words, if your limit is R$1,000,000, your emergency limit is R$1,000,000.

However, in some institutions this percentage can reach up to 20%. 

How much is the fee for this service?

Every time the customer needs to use the service, a fee will be charged, regardless of the amount used, even if the entire limit is not used.

The interest rate of the emergency credit card limit may vary depending on the institution and client profile.

However, they are charged from 5.9% per month. In addition to the interest rate, there is an IOF charge.

Therefore, it is very important to evaluate and choose the option that offers the lowest fees and interest rates.

Now that you've discovered how the credit card emergency limit works, What do you think about learning about some advantages and disadvantages of this service? Keep reading!

Advantages and disadvantages

This is a great way to avoid embarrassment when purchases exceed your credit card limit.

Furthermore, it can be used in times of emergency, when you are out of money and have no credit limit on your credit card.

However, as interest is charged, it should be used with caution and only in times of need.

It is very important that you have full control over your expenses and payments so that you do not fall into over-indebtedness.

If your card statement is registered for direct debit, you should pay extra attention to avoid unpleasant surprises when checking your balance.

In fact, direct debit is a great way to remember to pay any bills and always stay ahead of payments. 

Read our text and Find out how to register your bills due for automatic debit. 

Best credit card options with this service

In this topic you will find some credit card options with emergency limit and how to request yours. Check it out!

1. Will Bank

Will Bank is a digital bank, and the second largest payment institution in Brazil.

It was created with a great purpose: to democratize the financial world and provide credit to the unbanked and classes that do not have easy access to financial services with fair conditions.

One of the great highlights of this digital bank is the ease of granting credit. Its credit card has no annual fees or charges and is approved even with a low score.

In addition, it has international coverage, the practicality of NFC technology and also the benefits offered by the Mastercard brand.

Opening your account is very simple, just download the app and register, if your account is approved, you will receive your credit card credit in a few days.

2. Santander credit card

Banco Santander also provides an emergency limit for its customers. However, it is granted automatically, according to the customer's profile.

The emergency analysis is carried out with each purchase and online. There is no way to request it through the bank's digital channels.

Santander has many card options, among the popular alternatives, we find the SX card.

It has an annual fee of R$399.00, but can be paid in up to 12 installments of R$33.25. However, this charge may be waived if you register your CPF or telephone number as a Pix key, or spend more than R$100.00 on the invoice.

It can be requested by non-bank account holders, however, it is necessary to have a minimum income of R$1,045.00.

Read our text to find out more details and how to apply.

3. How does the emergency credit card limit work: Banco Pan

Banco Pan also offers this service and its fee starts at 5.9% per month, varying according to the customer's profile.

Your credit card has no annual fee and also gives you a lot of cashback on your bill. In addition, you have access to discounts on partner brands, for example:

• 25% discount at Pacheco and São Paulo drugstores;
• 20% discount at Phillips;
• Pan Mais Rewards Program;
• 6 free monthly payments at Veloe;
• 30% discount at CNA GO.

There are 4 variations for you to choose the one that best suits your financial needs. If you are looking for an alternative with no annual fee, the Pan Internacional credit card is eligible.

See how to request yours and the main features of this card.

4. Digio

The Digio credit card is one of the best available today and offers many benefits and advantages. It has no annual fees or revolving interest.

Additionally, you can earn cashback at partner stores and extra money on your bill by referring your friends.

With this card you participate in the points program and can even apply for a personal loan.

With the Digio card, your emergency limit is 10% of the value of your regular limit. Requesting your card is very simple. Read our text and see how to do it.

Conclusion

In addition to discovering how the credit card emergency limit works, You also found some options of banks that offer this service. 

The emergency limit can help us in different situations, however, it must be used with care and purpose.