Credit Limit

[Eugine]

A credit limit is the maximum amount that a creditor will extend or allow you to borrow. The creditor may be a bank, a credit card company, an automotive company, or another type of lender. Limits are influenced by a variety of factors including your credit history and your credit rating. Credit history or credit report shows your payment and borrowing patterns. Credit rating or credit score shows a subjective assessment of your credit worthiness based on your credit history and your assets and/or liabilities. These factors are a part of the evaluation process used by creditors in setting credit limits.