Credit Limit

A credit card comes with a credit limit. This is the total amount that you can charge to your card. You credit limit is based on a calculation made by the credit card provider when you apply for a credit card. This calculation is based on a number of factors, including your credit history, income and other personal circumstances. It essentially assesses how risky it is for the credit card provider to enable you to borrow money. If you are considered to be a risk, you may not be given a large credit limit. For more details see Applying for a Credit Card.

Each time you use your credit card, whether to make a purchase, a cash advance or a balance transfer, the amount will be charged to your credit card. You can make as many transactions as you wish, as long as they do not exceed the credit limit. Once you have reached the credit limit you must repay part or all of the balance before you can make another payment on your credit card.