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
- A Company Showing Strong Momentum
- Will 2014 Be the Year of Energy Transfer Partners?
- Student Loan Debt Has Just Become Everyone's Problem
- The PS4 Is Beating the Xbox One; Will This Continue?
- Bitcoin and Other Forgotten Bubbles: What Happens After the Crash?
- 3 Reasons the Market Still Loves This Dividend Stock