The credit limit is the maximum amount of money that may be charged to your credit card account. The issuer will usually allow you to carry the full amount as an unpaid balance provided you make minimum payments and pay the finance charges due each month. Most charge additional fees if your account exceeds the credit limit.
Related Fool Articles
- 60-Second Guide to Getting Out of Debt
- 60-Second Guide to Perfect Credit
- How-To Guide: Reduce Your Debt
Recent Mentions on Fool.com
- 3 Financial Legacies Every Father Should Pass Down to His Kids
- How to Calculate the Net Worth on Financial Statements
- 4 Reasons Why Millennials May Be Worse Off Than Baby Boomers Come Retirement
- What Is a Mortgage Broker, and Should You Use One?
- The Dirty Word Crushing Big Dividend Stocks
- 10 Infamous "Last Words" of Personal Finance