What typically happens when you exceed your credit limit on revolving credit?

When you exceed your credit limit on revolving credit, it typically results in incurring additional fees or penalties. Credit issuers set limits on how much you can borrow or charge on a credit card, and going beyond this limit often triggers over-the-limit fees, which can increase your overall debt. Additionally, exceeding your limit may lead to other consequences, such as a potential decrease in your credit score since it reflects poor credit management. This option accurately depicts the standard practices among credit lenders regarding the penalty for exceeding credit limits.

The other choices present scenarios that are unlikely to occur. For instance, continuing to spend beyond your limit without consequences (first choice) is not a typical outcome, as lenders monitor credit usage closely. Improvements to your credit score (third choice) can only occur from responsible credit use, and decreasing interest rates (fourth choice) usually happen as a reward for good credit behavior, not as a result of exceeding a limit.