Increase Credit Limit

Increase your credit limit to increase your credit score

Define Credit Limit

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Since this site is dedicated to looking at your credit limit, we should start at the most basic level. It helps to know exactly what a credit limit is, and how to define it. One way to define it is:

A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit.

The most common area that you will see this in is with credit cards – your credit limit is the maximum amount that a credit card company will allow you to borrow on a card. If you hit that limit, you cannot spend any more on the credit card unless or until you pay it down. This amount can be determined by the credit rating of the applicant, credit history, and it can be raised once a person has shown themselves to be credit-worthy.

Credit limit is a simple concept once you understand, but it could be a little bit too confusing if you haven’t been exposed to that idea.

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