Credit Card Glossary: Terms and Definitions
Confused by credit card terms? CreditCards.com's glossary of credit card definitions will help. From account holder to Regulation Z, we have defined the most-common and most-confusing credit card terms.
- Credit limit
- A credit limit is the amount of money that can be charged to a credit card. The size of a credit limit, and how much of it has been borrowed, have a large influence on consumer credit scores. Low credit utilization -- that is, a credit limit on which little has been borrowed -- leads to a higher credit score. Credit limit is also known as a credit line. See "How to ask for a credit limit increase."