What is a credit card limit?

A credit card limit is the maximum amount of money a bank or card issuer allows you to spend using your credit card. This limit is determined based on your income, credit score, and repayment history. Key details about credit limits include:

• It represents the total borrowing capacity available on your card at any given time.
• Spending beyond this limit may result in transaction rejection or over-limit fees.
• As you repay your outstanding balance, your available credit increases up to this set limit.