Credit limitation

Limitation is a limit norm. Credit limits are the maximum amount of money a lender will allow a consumer to spend using a credit card or revolving line of credit. The limits are determined by banks, alternative lenders, and credit card companies and are based on several pieces of information related to the borrower. These lenders examine the borrower's credit rating, personal income, loan repayment history, and other factors. Lenders will not issue a high credit limit for someone who won't be able to pay it back.

Sources:

Limitation. Britannica Dictionary. Retrieved from: https://www.britannica.com/dictionary/limitation

Limitation.(2023)Cambridge dictionary. Retrieved from: https://dictionary.cambridge.org/dictionary/english/credit

Kagan, O. (2007). What Is a Credit Limit? How It's Determined and How to Increase. Investopedia. URL: https://www.investopedia.com/terms/c/credit_limit.asp