Your credit card balance is increased every time, by the amount of the purchase that you make. To know the amount left for payment, you need to subtract the credit card balance amount from your credit limit.
The credit limit of a credit card is usually determined by your credit card issuer, based on various factors such as your income, credit history, and credit score. You can request your credit card issuer to increase your credit limit at any time.
Factors Affecting your Credit Limit
Lenders issue a high credit limit only to those whom they see as a low-risk borrower. There are a variety of factors, based on which the lenders determine the amount that can be extended to a borrower. Followings are some of such factors:
Your credit limit tends to be high if you make a good amount of money. This is because if you earn more, your affordability will also be more.
Every lender has their own set of parameters to measure the creditworthiness of borrowers. Some also stick to the guidelines of their own companies.
If your credit history is good, the limit is also set high by the lenders. It also depends on the limits of other credits or loans owed by you.