What factors determine the credit limit on a revolving credit account?

The credit limit on a revolving credit account is determined by several factors, including the borrower’s creditworthiness, credit history, income, debt-to-income ratio, and the lender’s risk assessment. A higher credit score, stable income, and responsible credit behaviour typically result in a higher credit limit, while a limited credit history or high debt levels may lead to a lower limit. Lenders evaluate these factors to assess the borrower’s ability to manage credit and repay debts, influencing the credit limit they offer on the revolving credit account.