Credit Cards
Credit Limit
What it means
The most you can borrow on a revolving account, such as a credit card. Your credit limit directly affects your credit utilization ratio. A higher limit lowers your utilization and can help your score, as long as you do not spend more.
Covered in the free course
- The 5 FICO Factors: Your Score at a GlanceUnderstanding Credit
- Anatomy of a Credit Report: Section by SectionReading Your Credit Report
- Starting with No Credit HistoryBuilding Credit from Scratch
- Strategies to Drop Your Utilization FastCredit Utilization
- The Real Cost of Closing Old AccountsLength of Credit History
- Revolving vs. Installment Credit ExplainedCredit Mix
- Hard vs. Soft Inquiries: Know the DifferenceNew Credit & Inquiries
- The Secured Card StrategyBuilding Credit from Scratch