A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit (sometimes called a credit line, line of credit, or a tradeline). For example, it is the most that a credit card company will allow a card holder to take out at once on a card.
This limit is based on a variety of factors ranging from an individual's ability to make interest payments, an organization's cashflow and/or ability to repay the credit card debt and is an obligation of the consumer to pay just like all other parts of the balance.
Read more about Credit Limit: Maxed Out
Famous quotes containing the words credit and/or limit:
“If you want to be on good terms with everyone in this world, sell goods on credit and never ask for payment.”
—Chinese proverb.
“It is after all the greatest art to limit and isolate oneself.”
—Johann Wolfgang Von Goethe (1749–1832)