A credit card is one of the best financial products, provided you use it wisely. If not, you end up paying unnecessary charges. Whether you are an experienced user of this banking facility or willing to apply for a credit card for the first time, you should understand and adopt the best practices. Credit cards can either be immensely advantageous or incredibly harmful, depending on how you use them.
One of the most vital aspects to understand about your credit card is your credit limit. It is the maximum outstanding balance you could have on your card at any given point in time without attracting a fine. The effective management of a credit limit is crucial for establishing a better credit score and staying out of dues. If you are conjecturing what the credit limit is for your credit cards, refer to your billing statement, log into your online account, or dial the customer care number.
How is the credit limit set for you?
Credit card companies fix the credit limit for you by…