Credit Limit Definition: A credit limit refers to the maximum amount you can use on your credit card account. The bank or financial institution offering and approving a credit card or line of credit will set the limit based on a customer’s credit history, income, and relationship with the bank or lender.
A credit limit significantly impacts a consumer’s credit rating and scores, and regular payments or delays and missed payments can impact your ability to approve a loan or another credit product in the future. In most cases, lower credit limits are provided to people with a poor or fair credit history. In contrast, a higher limit and more flexible products are offered to people with excellent credit history.
comparewise
Send us your questions and we will get back to you.
Top deals await you just a short
application away!
