Credit Limit refers to The maximum amount a borrower is allowed to charge on a credit account.
Here are examples of how to use the term Credit Limit in various contexts:

Credit Line Increase:
“After consistently paying her bills on time, Jessica requested a credit limit increase to give her more flexibility with future purchases.”

Credit Card Context:
“Sarah’s new credit card came with a $5,000 credit limit, meaning that’s the maximum amount she can spend before making payments.”

Loan Context:
“The personal line of credit has a $10,000 credit limit, allowing John to borrow and repay up to that amount whenever he needs.”

Credit Utilization:
“Keeping your credit utilization below 30% of your credit limit is recommended to maintain a healthy credit score.”

Financial Emergency:
“When his car unexpectedly broke down, Mike was grateful that he hadn’t reached his credit limit, giving him enough room to cover the repair costs.”