I have never used a credit card myself but recently I saw my uncle using one. Being unaware of its usage totally, I asked him about its purpose, limit, benefits and more. He said that a credit card allows one to pay for things without having the actual money in hand but need to return the amount along with interest later. It is very much beneficial as while using it one knows that he will not fall short of money entirely. It is like borrowing money and repaying it with some extra charges. So if you too want to know
what is a credit limit, let me tell you about it. It does vary from one card to another so let me share whatever I know to help you all.
Pay all your bills without interruption and get exciting rewards using credit card on NoBroker Utility Bill Payment Service Pay your rent using your credit card and get assured rewards right hereWhat is a credit card limit?
A Credit Card Limit is the maximum amount one can spend using his or her credit card. The limit gets fixed by the company so it varies from one company to another.
How is the credit limit set?Ater knowing what is the credit limit on a credit card, I grew curious to know how the limit is set. Like of course I cannot go on spending as much money as I like. So when I asked about it, my uncle said that banks look at the person’s debt-to-income ratio and then set the limit. The amount of debt pending to be repaid and how one manages them plays a vital role in setting the limit. The higher is the debt-to-income ratio, the lower is the limit set on credit cards.
What is the highest credit card limit in our nation?My uncle said that JetPrivilege HDFC Bank World Credit Card Limit is about Rs 2 lakhs to Rs 5 lakhs and that is the highest credit limit he has heard of
I hope you know understand what is a credit limit.
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Authors Of The Question
What is A Credit Card Limit?
Pankaj
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2 Year
2022-08-19T12:38:03+00:00 2022-08-31T13:22:40+00:00Comment
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