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
- What Does Obamacare Mean for Medicare Beneficiaries?
- You Should Be Nervous If Facebook Tried to Tackle Mobile Payments
- Did Fiat S.p.A. Take the Muscle Out of the 2015 Dodge Charger?
- Ford Shows a New Mustang but Holds Back the Details
- 7 Simple Budgeting Tips
- 9 Steps to Boost Your Credit Before You Buy a House