Alec asked in Business & FinanceCredit · 7 months ago

What exactly does a $500 credit limit mean? Is that per month, or individual purchases?

12 Answers

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  • Anonymous
    7 months ago

    enter terminiate protermipower, zapbot

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  • 7 months ago

    Credit limit is the total amount you can charge on the card, you can never go above that..

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  • Erik
    Lv 7
    7 months ago

    That's the grand total. Once your charges reach $500, you can't charge any more (until you make a payment).

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  • R K
    Lv 7
    7 months ago

    it means you can't spend more than five hundred dollars total. if you spend five hundred

    you can't spend anymore until you pay some of the balance off.

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  • 7 months ago

    Neither. It is the amount that you can owe at any one time. It means that you must always keep your total balance under that amount.

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  • Judy
    Lv 7
    7 months ago

    total owed at any one time

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  • Anonymous
    7 months ago

    That is the maximum amount you can spend. It can be in one purchase or in multiple purchases. It is a rotating amount that is available based on what you have used and what you have remaining.

    I am guessing this is a credit card. If you pay it off, the limit resets and you have the full $500 again. If you only pay part of what you used, you only have the remaining balance of the credit limit until you pay back the rest.

    $500 credit limit. Use $200. Pay $200 when payment is due. You have the full $500 again.

    $500 credit limit. Use $200. Pay minimum payment of $25. You only have $325 for a credit limit until you pay back the rest ($175) of the credit limit you used. AND - INTEREST WILL BE CHARGED AND THE INTEREST ALSO TAKES AWAY FROM the available credit line.

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  • 7 months ago

    Read the contract for your card, numbnuts

    • roderick_young
      Lv 7
      7 months agoReport

      I didn't downvote, but note that we all have to start somewhere. Asking elementary questions was how I learned things.

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  • 7 months ago

    The bank employees should be able to shed more light on the subject as when customers get credit cards each case would be treated differently

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  • Anonymous
    7 months ago

    It means TOTAL. That's the maximum amount you can borrow or charge.

    Source(s): A basic clue. Get one
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