What is a credit limit?

A credit limit is the maximum amount that you can borrow from a credit card company. It is the maximum balance you can carry on your credit card. It is the amount of money you are allowed to charge against your card. It is also known as your credit line or credit ceiling. In the State of Washington, the Credit Card Law outlines the rules for credit card limits. It states that credit card companies can give customers a fair and reasonable credit limit. They must also provide customers with information about the associated fees, interest rates, and any other terms of the account. It is important to note that a credit limit is not the same as a spending limit. A spending limit is the maximum amount of transactions you can make on your card within a certain period of time. Furthermore, going over your credit limit can result in costly fees and massive interest rates. It is important to understand your credit limit so that you can stay within it and avoid high fees or interest rates. It is also important to keep track of your balance as to not go over your credit limit. If you find yourself exceeding your credit limit, it is important to consult your credit card company to discuss other options.

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What is a credit limit?

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