What is a credit limit?
The Bankrate.com financial term of the day is: "credit limit."
When you use a credit card, the sky is NOT the limit. Instead, there is a maximum amount of money you can borrow to make purchases using the card, and this is called your credit limit. Your credit limit is set based on your income and your ability to handle credit, as reflected by your credit score. You can be hit with a fee if you go over your limit.
Your credit card can't get you all that money can buy. Your credit limit puts boundaries on your plastic.
To shop for the perfect credit card, visit the credit cards section at Bankrate.com.