Credit Limit
The maximum amount a borrower can utilize on a credit product.
Detailed Description
Credit Limit
What is a credit limit?
A credit limit is the maximum amount of credit a lender extends to a borrower on a credit account.
How can I increase my credit limit?
You can request an increase, improve your credit score, provide updated income information, and establish a good payment history.
What factors influence the determination of a credit limit?
Factors include credit score, income, credit history, debt-to-income ratio, and lender policies.
What is the impact of exceeding your credit limit?
Exceeding your credit limit can lead to fees, interest rate hikes, and potential damage to your credit score.
Are credit limits fixed?
No, credit limits can change based on financial behavior and lender policies.