The credit limit
Example: Credit limit sets maximum amount that can be borrowed on credit
Definition
"The credit limit" is the maximum amount of money that a borrower is allowed to use or owe on a credit account, such as a credit card or loan, without exceeding the set borrowing capacity established by the lender.
Etymology
The phrase "the credit limit" combines "credit," which originates from the Latin word 'creditum' meaning 'a loan' or 'thing entrusted,' and "limit," from the Latin 'limitas,' meaning 'boundary' or 'border.' Together, they describe the boundary of borrowing capacity allowed by a lender.
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"The credit limit" appears in the Vocaplus list "English - Finance - (A1-C2) - set 1", containing 150 commonly used words.
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