Investor Glossary-credit limitInvestor Glossary-credit limitInvestor Glossary-credit limitInvestor Glossary-credit limitInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Credit Limit

The HTML to link to this page
 

A credit limit is the explicit borrowing ceiling set by a lender for a particular customer. The credit facility having a credit limit can take many forms, both secured and unsecured. The line of credit, letter of credit, and credit card all have a credit limit. An example of secured debt would be the home equity line of credit, or HELOC, where the credit limit decision would take into account the amount of home equity accumulated. On the other hand, the credit limit on a credit card, which is unsecured, would be based entirely upon creditworthiness. The creditor can raise or low the credit limit at its sole discretion. One exception relates to Regulation U, a Federal Reserve rule that limits the credit limit a customer can be offered to buy securities on margin.



Rate this credit limit definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, FTSE, EBITDA, FICO score, 401a, reverse mortgage, liquidity ratio, average price per share, phantom income, cancelled check, 144a, retained earnings, inflation, class C shares, LIBOR, diluted share, Key Rate Duration, APR, command economy, minority interest, option premium, balance sheet, ex-dividend, VIX, stock split, risk management, debt service coverage, implied volatility, real GDP, deferred revenue, 1035 exchange, required rate of return, quality assurance, covered put, stock market close, ex-dividend date, labor relations, annual return, Zero Cost Collar, current ratio, dividends payable, 1031 exchange, limit order, open position, per diem, margin rate, irrevocable trust, deferred tax, wholly-owned subsidiary


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use