BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What is a Credit Limit? Credit limit, as the name indicates, is the purchase limit set by the credit card company or a bank on a particular credit card. The limit, which is usually in terms of money, is the maximum amount the user can spend using the credit card.

Detailed explanation-2: -A credit card, which is a type of revolving credit account, comes with a credit limit assigned by the lender. This limit is the maximum amount you can spend on your credit card, but note that you’ll still have to make a required monthly payment.

Detailed explanation-3: -The highest credit card limit you can get is over $100, 000 according to anecdotes from credit card holders. But like most credit cards in general, even the highest-limit credit cards will only list minimum spending limits in their terms.

Detailed explanation-4: -Yes, you can go over your credit limit, but there’s no surefire way to know how much you can spend in excess of your limit. Card issuers may consider a variety of factors, such as your past payment history, when deciding the risk of approving an over-the-limit transaction.

Detailed explanation-5: -A credit utilisation ratio of more than 35% can reduce your credit score. So, if you use up your entire credit limit, your credit utilisation ratio would be 100%, which can lower your credit score.