credit-limit

Vocabulary Word

Definition

'Credit limit' refers to the maximum amount a borrower can spend or withdraw using a credit card or line of credit. It's set by the lender, who takes into account the borrower's ability to repay.

Examples in Different Contexts

For overdraft facilities, the 'credit-limit' represents the maximum overdraft amount a bank allows on a checking account. A bank manager might say, 'The credit-limit on your overdraft facility will depend on your account history and financial standing with our bank.'

Practice Scenarios

Business

Scenario:

We've been approved for a B2B credit line. This will allow us more flexibility in rapid expansions.

Response:

That's fantastic news. We must keep track of our expenses, despite the higher credit limit.

Customer-Service

Scenario:

Mr. Johnson is finding restrictive his current credit limit, and would like to request a review.

Response:

I can certainly assist Mr. Johnson with a credit limit review request.