What Is a Credit Limit?
The ‘Credit limit’ is the maximum amount you can spend or borrow using your Credit Card. This limit is determined by various personal details like your income, source of income etc. The credit limit is normally raised or lowered depending on your previous years track record in terms of spending and repayment.
(back to top) We will establish a Credit Limit for your Account. Subject to the terms of your credit card Agreement, you may use your Account for Purchases, including Balance Transfers, up to the Credit Limit; and you may use your Account for Cash Advances, including for Convenience Cheques up to the Cash Advance Limit.
The amount of your credit limit can depend on several factors: Your credit history, your security funds amount (if applicable) and/or your application information. There are two types of credit limits: • Unsecured: With this type of credit limit, your issuer simply has your “promise to repay” the amount you owe. • Secured: Also referred to as a “Secured Card,” this type of credit limit requires providing money as security against the risk of a borrower not paying. Individuals who do not qualify for unsecured credit may qualify for secured credit. Remaining within your available credit limit shows your card issuer you can manage credit, which will help to build a good credit history. Here are other tips for building good credit. • Make at least your minimum monthly payments on time. • Contact your issuer immediately with errors on billing statements. • Monitor your credit limit by keeping a record of purchases. Over time, issuers may increase your initial credit limit based upon your re
