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
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“The thief steals from himself. The swindler swindles himself. For the real price is knowledge and virtue, whereof wealth and credit are signs. These signs, like paper money, may be counterfeited or stolen, but that which they represent, namely, knowledge and virtue, cannot be counterfeited or stolen.”
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