What is a credit limit and how to change it.

What is a credit limit?

A credit card limit is the maximum amount that a credit institution (such as a bank or financial company) allows you to borrow. This limit can be used for many different purposes, such as shopping, consumer loans or business loans.

Credit limits are determined based on many factors, including:

• Your credit history: If you have a good credit history, meaning you have paid your debts on time and have a high credit score, you may be able to get a higher limit.
• Your income: High income means better repayment capacity, so you can get a higher usage amount.
• Collateral: If you have collateral for your loan, such as a house or car, you will be given priority to borrow at a lower interest rate.

Quyen is a creative copywriter with a passion for fintech. a degree from the Ho Chi Minh University of Economics. After graduating from the UEH (Ho Chi Minh Economics of University), she's constantly expanding her knowledge through investment and financial literacy courses, seminars, and conferences. Quyen also has experience in banking and credit. Her articles draw on her background in finance to help readers make informed decisions.