Account Terms
Credit Limit: Definition
The maximum amount of credit available on a revolving account.
Definition
Credit Limit represents the maximum amount of credit that a consumer is authorized to borrow on a revolving account. This field is essential for calculating credit utilization ratios, which significantly impact credit scores. For installment loans, this field typically contains the original loan amount.
Examples
10000 = $10,000 limit25000 = $25,000 limit
Usage Notes
- Required for revolving accounts
- Should be updated if limit changes
- High limit relative to balance improves utilization ratio
Related Metro 2 Fields
Related Terms
More Account Terms
Account Status
A code indicating the current condition of an account.
Account Type
A code specifying the type of credit account.
Account Number
The unique identifier assigned to a credit account.
Amount Past Due
The total amount currently overdue on an account.
Current Balance
The total outstanding balance on an account.
Highest Credit
The highest balance ever recorded on the account.
Original Loan Amount
The initial amount borrowed on an installment account.
Scheduled Monthly Payment Amount
The regular monthly payment due on an account.
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