Credit Limit

When you first receive your credit card, your card issuer will have set you a credit limit. This is the maximum amount you are allowed to spend on the credit card. Remember, it is a maximum, not a minimum! You may spend any amount up to the credit limit.

Your card issuer will have decided on the credit limit it is prepared to offer to you based on the information you supplied on your application form and on its credit scoring process. The card issuer will, as a matter of course, have checked out your credit record with a credit reference agency.

If you attempt to go over your credit limit you may find your credit card being refused by retailers or, if the spending is allowed, you may be faced with financial penalties from your card issuer.

If you think you are likely to go over your credit limit, for whatever reason, you may contact your card issuer and request a higher limit, which they may or may not grant.

See also: Financial Services