What is a credit limit?

A credit limit is the maximum amount you can borrow on a credit card. In Florida, the credit limit is often set by the credit card issuer. It is usually based on factors such as your credit history and income. The limit may also be impacted by promotional offers or rewards programs. The credit limit is important because it helps you manage your spending and keep track of your credit card balance. In addition, spending more than your credit limit could result in penalties, such as an over-the-limit fee. This penalty is in addition to any interest you may incur for the amount over your credit limit. Having a high credit limit can be beneficial as it allows you to access more funds for purchases, but it can also tempt you to overspend. To stay in control of your finances, try to only use the credit card for essential purchases and pay off your balance in full each month. This will help you avoid incurring debt or high interest payments. Overall, understanding your credit limit is essential for responsible credit card use. It will help you keep track of your balance and manage your spending.

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