Finance Glossary
Credit Limit
The maximum amount a lender will allow you to borrow on a revolving credit facility such as a credit card or overdraft. Credit limits are set by the lender based on your income, credit score, and existing commitments. Exceeding your credit limit may incur fees and will be noted on your credit file.
Example
A credit card with a £2,500 limit means you can carry a balance up to £2,500 at any one time.
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