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Credit Limit
The maximum amount of credit that a financial institution or other lender will extend to a borrower.
More Details
A credit limit is the maximum amount of money that an individual or entity is allowed to borrow using a credit card or other type of credit. A credit limit is determined by the lender and is based on factors such as credit score, income, and debt level.
Example
If you have a credit card with a $5,000 credit limit, you will not be able to charge more than $5,000 on the card. If you try to make a purchase that exceeds your credit limit, the transaction will be declined.
Related Terms
Retirement
The state of exiting the workforce, usually at the end of one's career, and living on savings or pension.
Electronic Funds Transfer (EFT)
A type of financial transaction that involves the movement of money between accounts using electronic communication.
Forged Check
A check that has been altered or created without the permission of the person or entity named as the payee. It is a form of fraud.