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mainframe Online Quiz - 34
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What is Credit Limit?
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A
The maximum limit that a customer can utilize the credit that was provided by the issuer.
💡 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.