What is Credit Limit?
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The maximum limit that a customer can utilize the credit that was provided by the issuer.
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The maximum limit that a customer can withdraw money from the ATM.
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The minimum amount for which the customer can use his card for a single purchase.
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None of the above.
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Explanation
Credit Limit is the maximum outstanding balance a cardholder can carry at any given time, as set by the card issuer. It represents the total credit extended to the customer, not the withdrawal limit from ATMs (that's a cash advance limit) or a minimum purchase threshold. Customers can use up to this limit for purchases, cash advances, or balance transfers, subject to the limit amount.