Credit Limit

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:

    “What are the characteristics of today’s world so that one may recognize it by them?” It pays pensions and borrows money: credit and monuments.
    Franz Grillparzer (1791–1872)

    No one who cannot limit himself has ever been able to write.
    Nicolas Boileau-Despréaux (1636–1711)