Okuzeka
Finance & Banking vocabulary · Payments & Cards

Credit limit

Meaning in finance & banking, with examples

nounCore term

In finance & banking, credit limit means: The maximum amount a bank allows a customer to borrow on a credit card or a credit line.

In Turkish: kredi limiti, kart limiti

How it is used

Used with cards, overdrafts and business credit lines. Banks set, raise or reduce a credit limit; customers reach, exceed or go over their limit. 'Available credit' is the part of the limit not yet used.

Example sentences

  1. The customer asked us to raise her credit limit before her trip.

  2. The payment was declined because it would exceed the credit limit.

Common collocations

  • raise a credit limit
  • exceed the credit limit
  • credit limit increase
  • available credit
  • credit cardA plastic or digital card that lets you buy now and pay the bank later. You can spend up to a limit and pay interest if you do not repay the full amount on time.
  • overdraftAn arrangement that lets you spend more money than you have in your current account, up to an agreed limit, usually with interest charged on the negative balance.
  • minimum paymentThe smallest amount a credit card holder must pay by the due date to keep the account in good standing. Interest is usually charged on the rest.
  • credit scoreA number that shows how likely a person is to repay debts, calculated from their credit history, such as past loans, card use and late payments.

More terms: Payments & Cards

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This page explains English vocabulary for learners. It is not financial advice.