A credit limit is the maximum amount of money a credit card company allows you to borrow. It is important to stay within your credit limit and make payments on time to maintain a good credit score.
A credit limit is the maximum amount of money a credit card company allows you to borrow. In this case, your credit card has a credit limit of $1,000.
The credit card company reviews your credit line every 6 months, which means they reassess your spending and payment history to determine if they should increase or decrease your credit limit.
For example, if you have been consistently making your payments on time and have a good credit score, the credit card company might decide to increase your credit limit.
On the other hand, if you have a history of late payments or have maxed out your credit card, they might decrease your credit limit.
It's important to stay within your credit limit and not exceed it, as doing so can result in fees or penalties.
It's also important to make your payments on time to maintain a good credit score and increase your chances of getting a higher credit limit in the future.