Credit Limit
Definition
- The maximum amount of charges a cardholder may apply to a credit card account as allowed by the credit lender.
Synonyms
maximum credit, available credit amount, cap, cutoff point
Related Terms and Acronyms
- Credit Card (CC) — Acronym, Very Important,
- A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.
➥ A payment card that gives customers access to a revolving line of credit. - Credit Line — Definition,
- The maximum money amount available in an open-end credit arrangement such as a credit card or overdraft protection.
- Joint Credit — Definition,
- Credit that is issued to two people based their credit reports and their combined assets and incomes. The repayment of joint credit is the responsibility of both parties.
- Secured Credit Card — Definition,
- A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments. It is used by people new to credit, or people trying to rebuild their poor credit ratings.
- Unsecured Claim — Definition,
- A claim or debt where the creditor has no guarantee of repayment because collateral is not required from the borrower. Credit is granted solely on an assessment of the debtor's future ability to repay the claim or debt.
