Credit limit

A credit limit is the maximum amount of credit that a bank or other lender will extend to a debtor, or the maximum that a credit card company will allow a card holder to borrow on a single card.

Credit card companies will also allow you to change your credit limit, or limit the credit available to authorized users on the account. This is especially useful if you give your children an emergency card with, say, a low limit like $100.

Credit card limits are frequently raised when you continue paying on-time and in-full. You can usually request a credit limit increase from your card company as well.

External links

• Setting Credit Limits - CreditGuru.com
• Advantages and disadvantages of credit limits