Answer:
What is a credit limit?
A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit.
what is the purpose of a credit limit?
Credit limits determine how much you can spend using your credit cards and serve as a way for lenders to limit the risk of lending money. Having high credit limits can be a good thing, because it gives you the flexibility to spend money when you need to and it may help you maintain good credit scores.
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