Banking
Credit Limit
Also known as: Credit Line, Available Credit
The maximum amount a cardholder can borrow on their credit card at any given time.
Detailed Explanation
Credit limit is the maximum outstanding amount allowed on a credit card, determined by factors like income, credit score, existing obligations, and relationship with bank. It can be increased by requesting the bank or through automatic reviews. Exceeding credit limit may result in penalties and negative impact on credit score.