Credit Limit

Credit limit is the maximum balance a revolving credit facility — such as an IBLOC or CVLOC (a policy cash-value line of credit) — will let you carry at one time. It is set by the lender, not by Policy Stack.

A facility's credit limit is the anchor for two derived figures: Available Credit (the limit minus the current balance) and Facility Utilization (the current balance as a percent of the limit).

Policy Stack records the credit limit only if you enter it on the facility. With no limit recorded, available credit and utilization can't be shown — the figures simply read as unavailable rather than assuming a number.

Related terms: Available Credit, Advance Rate, Facility Utilization, IBLOC