The maximum amount you can borrow on a credit card, loan or line of credit. Your limit is based on factors like your income, credit history, and existing debt. Think of it as your lender's vote of confidence in your ability to repay. However, just because you can borrow up to your limit doesn't mean you should. Keeping your usage well below your limit (ideally under 30%) helps maintain a healthy credit score and keeps you from overextending yourself financially.