The credit limit on a credit card restricts the total cumulative amount of charges that can be made by the borrower over the borrower's lifetime.

Question

Quizplus · Accepted Answer

The credit limit is the maximum amount of money that a borrower can borrow on a credit card. It is a cumulative limit, meaning that it includes all of the charges that the borrower has made on the card, regardless of when they were made.

The Credit Limit on a Credit Card Restricts the Total