What is a credit limit?

A credit limit is the maximum credit extended to you by the credit card issuer.

The limit set is based on the assessment of the information provided in your application form.

The credit limit may be changed over time depending on your spending pattern and payment capability.

You should have a credit limit that matches your repayment capacity to avoid spending unnecessarily and to minimise your liability in the case of fraud.

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Reprinted with permission from BankingInfo (A Consumer Education Programme)

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Knowledge Base ID :   1233
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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