How does a credit card work? How do i pay after i exceed the sum limit allocated to me?

With my credit card I cannot go over the limit, it usually gets declined straight away. There are other cards that charge you a lot of money if you go over the limit, it all depends on who you bank with.

A credit card is given to you by the bank and you can spend money which you don't currently have in your account. This is usually an agreed limit that you can spend and it depends on how much money you earn. The more money you make, the higher the limit for your card.

When you reach your credit card's limit, you can no longer make any purchases. If you had a Rs5,000 limit and you have already used Rs4,800 and wanted to buy something worth Rs500, then the transaction will not go through and it will be rejected. If you badly needed to use the credit card, then what you could do is put some money on the card (by going to a branch or internet banking) to cover the difference for the purchase to go through.

At the end of the month, you are required to make a minimum payment towards the money you've spent on the credit card or you can settle the amount in full. When you apply for the card, the bank will ask how much you want to pay at the end of the month.

Note that you incur charges/interest on the amount you've used on the credit card unless you pay the whole amount within an agreed time limit (usually 30 days).

In Mauritius, you cannot exceed a credit card limit. It is illegal for a bank to do so as per the Bank Of Mauritius rules. Your card is blocked the moment you reach your limit.