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What is a credit limit?

What is a credit limit? Here are some definitions.

Noun
  1. (finance, banking) The maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit.
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This minimum payment may also include any past due amounts and any portion of the total new balance owing that is more than your credit limit.
The tricky point comes when the credit limit is reached. For governments, that credit limit can vary enormously.
If you're worried about exceeding your credit limit, call your card issuer to ask for a small increase.
Should my credit card ever be compromised, though, the thief would be in for a rude awakening as my credit limit is pretty low.
Similar to mobile phone top-up vouchers, the new voucher has a unique credit card number and a set credit limit.
I do my best to never exceed my credit limit, though there are months when it's been a close call.

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