Credit Limit

Explanation: The maximum amount you may charge on your credit card. Some credit cards have different limits for purchases and cash advances.

One of the main factors that determine how high is your credit limit is how good is your credit score.

Our Thoughts: If you charge more than your credit limit, you might be charged an overlimit fee. It is your responsibility to keep tabs on your spending and your credit limit. "Maxing out" your credit cards can hurt your credit score. Try to keep at least half of your credit limit available as unused credit on each of your credit cards.