The maximum amount of outstanding balance you are allowed to reach on your credit card.

The largest amount of outstanding balance that you are authorized, by the credit card issuer, to carry on your credit card. For example, if your credit limit is $7,000, you are allowed to use the $7,000 as a revolving line of credit by using your credit card for purchases and withdrawals. The maximum amount of money you are allowed to borrow on your credit card would be $7,000. An ‘Over the limit’ fee may be charged if you exceed your credit limit.