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frosja888 [35]
3 years ago
8

What is a credit limit and what is it's purpose?

Business
1 answer:
Assoli18 [71]3 years ago
3 0

Answer:

What is a credit limit?

A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit.

what is the purpose of a credit limit?

Credit limits determine how much you can spend using your credit cards and serve as a way for lenders to limit the risk of lending money. Having high credit limits can be a good thing, because it gives you the flexibility to spend money when you need to and it may help you maintain good credit scores.

Explanation:

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