Credit limit
A credit limit is the most you can owe on a credit card at once, set by the issuer from your income and credit history; your balances divided by your limits is your credit utilization.
Issuers can raise or lower limits. A higher limit with the same spending lowers utilization; a cut can raise it without any change in what you owe.
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Related terms
Sources: myFICO: What's in my FICO scores