Credit Card | Credit Limit
Credit Limit: You should keep few dates in your journals so that you do not have to face the repercussions. One of those dates or information is your credit card limit. It is the limit that you can have certain amount of money in your credit card at a given period of time without facing any penalty. To maintain a good credit score, it is important for you to manage your credit limit.
For getting to know about the credit limit, check your credit card statement or you can see that by logging into your account.
Credit Card Limit
It is totally up to your credit card issuer, that what credit limit have to set. And the credit limit is set when you apply for the first time for the credit card. Your income, credit history, current debt level will assessed. And then based on these all factors, a credit limit will set. For instance, if you have a new account and did not have any credit history, or a record of late payments, low income. Then a low credit limit will set up for you to start with credit card. So, basically these are the deciding factors to set the credit limit for you. The income is directly proportional to your credit limit.
You will know your credit limit once you are done with filling. The form and your application for credit card has approved. You can request for raising or reducing your credit card limit. If you are not contented with your current credit card limit. The credit limit does not remain same , it depends on how you use your credit card. If you are using it wisely, it can increase for a period of time, even, without requesting to increase it.
The same scenario is when you have late payments due, increase of debt in your account, then your credit limit will be lower. This all depends on your credit card issuer that what credit limit he sets and what terms and conditions he contrives in an agreement.
Credit Limit and No Preset Spending Limit
There are some credit cards that do not have a fixed credit limit. In other words, those credit cards do not have any preset spending limit. They do not give you an infinite amount of available credit. Rather , these cards work on this thing that it varies its spending limit based on your current spending habits, income, credit history, and other factors.
Use your credit card wisely and maintain a good credit history so that you can have opportunity to avail different services. For more information , keep reading and visiting us!