Credit limits are one of the many credit card-related terms that every individual must understand, in order to maintain a good credit score. While a credit score might not seem very important, in certain countries, it even affects an individual’s ability to rent out or purchase an apartment.
Are you worry how to know the what is a credit limit? Credit limit is one of the way to know about your credit card balance limit, how much you can use yore credit card. Having a high credit limit paints a very positive image of yourself to other individuals, but it can also tempt you to spend more which can hurt you in the future.
To help you understand this better, we have explained above the definition of a credit limit, to what extent can it be used, the correlation between a credit limit and credit score, how it can be altered, and what to do if the credit limit does not get reported.