What is the credit limit? Credit line?

Answered on August 05, 2010
Updated on August 05, 2010
The content is accurate at the time of publication and is subject to change.
James Williams James Williams
Credit limit, also known as a credit line, is the maximum amount of credit extended to you by your credit card company. Basically it is how much you can charge to your card. Usually the higher your credit score is, the higher the credit limit is that is set for your account. Your credit limit influences your credit history progress, as about 30% of data used for credit score calculation is based on your credit line – its size and how much of it you use. This ratio between available credit and borrowed amount is called credit utilization, and if your balance is close to credit limit, it is viewed as risky by lenders. Usually higher credit limits are available for people with good or excellent credit history and also have low interest rates, 0% intro APRs, and a whole range of benefits for best customers. View our best offers on Best Credit Cards page of our site.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

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