Understanding Your Credit Score: A Complete Guide

In personal finance, credit limits play a crucial role in determining one's financial capabilities and opportunities. They act as a cap on the amount of credit a person can access from financial institutions such as banks and credit card issuers. However, it is not uncommon for individuals to have low credit limits despite having a high income. This can be frustrating and confusing, considering that a higher income usually indicates a higher credit limit.

Are you worried about how your credit score is calculated? A credit score is a numerical representation value assigned to you that represents your borrowing potential. It's based on a variety of factors, including your payment history, the amount of debt you owe, and the length of your credit history.