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.
“Greatness collapses of itself: such limit the gods have set to the growth of prosperous states.”
—Marcus Annaeus Lucan (39–65)