Credit card credit limit

sultanoflondon

Hi there,

I understand that a credit card’s credit limit is the maximum that a credit card company will lend to you at any given time. Going above this limit usually incurs fees & interest. For example, if I have a 12 month 0% purchases card with a £6k limit, then I can spend up to £6k on the card & then either balance transfer it away or repay the debt. 

A friend of mine suggested that this limit is £6k per month, ie I could accumulate a 0% balance of £72k, but I disagree & my credit card agreement suggests that I’m right. 

What do you think? Cheers!

TadleyBaggie

Your friend is wrong. 

MattMattMattUK

sultanoflondon said:

Hi there,

I understand that a credit card’s credit limit is the maximum that a credit card company will lend to you at any given time. Going above this limit usually incurs fees & interest. For example, if I have a 12 month 0% purchases card with a £6k limit, then I can spend up to £6k on the card & then either balance transfer it away or repay the debt. 

A friend of mine suggested that this limit is £6k per month, ie I could accumulate a 0% balance of £72k, but I disagree & my credit card agreement suggests that I’m right. 

What do you think? Cheers!

Never take any financial advice from that friend, they are completely wrong. 

CliveOfIndia

Your friend is wrong, as others have said.  £6K is the overall limit, you must never exceed that at any time.

You could, should you wish, spend £6K on the card, make a repayment of £6K once the spending has been statemented, then spend another £6K on it.  But whichever way you juggle it, you must never have more than £6K debt on the card at any point.