Credit card limit has two key concepts: available limit and cash withdrawal limit. Available credit line is a measure of the amount of credit card consumption you can make at present. It is calculated by the bank according to your credit limit minus the used consumption, unpaid bills and potential transactions and expenses that have not been billed. Simply put, every consumption and repayment will affect this value.

Cash withdrawal limit refers to the limit that a credit card can withdraw cash or transfer money, which usually accounts for 5% of the credit limit. Different from the available amount, the withdrawal amount may be subject to additional restrictions, such as interest and handling fees. To increase the cash withdrawal amount, we can achieve it through a good credit record, such as using credit cards frequently and paying back in full on time to avoid over-reliance on installment payment. In this way, the bank may automatically increase your credit limit after a certain period of time, or you can take the initiative to contact the credit card center to apply for a temporary credit limit increase, but usually the range is limited.

Generally speaking, understanding and managing these two limits will help you use your credit card more effectively and ensure the health of your credit record.