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:
“Japanese mothers credit “effort” as the key determinant of a child’s achievement in school, while American mothers name “ability” as the more important factor.”
—Perry Garfinkel (20th century)
“There is no limit to what a man can do so long as he does not care a straw who gets the credit for it.”
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