Before we move on to the more complex issue and explain how the credit limit works, we will first try to answer the basic question: what is the credit limit?

Simply put, it is an additional amount of funds available on your account that you can use if needed. The mere fact of granting a credit limit does not mean that you have to use it every month or use it immediately. You can use it according to your needs because these funds are available directly on your account in the form of debt.

How to get the limit?

Any adult who is a customer of a given bank (has an account or is a co-owner), has a regular income and lives on Polish territory can apply for the limit. You and the bank decide how high the personal account limit will be. This amount is usually calculated on the basis of your creditworthiness – first of all, regular inflows to your account are taken into account.

The limit may also be affected by additional factors such as seniority of the account or your possession of other financial products of this institution.

You can apply for a credit limit at a branch of a specific bank, or (in some cases) via electronic banking. If you do not have a limit yet, the bank usually prepares an offer for you, which is available online with a few clicks.

Credit limit – costs and commissions

In fact, you can apply for a credit limit on your personal account at any bank. This product is so popular that banks do not regulate what the customer will spend these funds on, as everyone has the right to use them at their own discretion. By default, the funds available within the credit limit should always be “on hand”. However, this privilege can cost a lot.

Account credit limit – fees

Fortunately, the mere possession of a credit limit does not involve additional fees. The bank only charges them when you start using it and only from the part you used. If we assume that your limit is USD 2,000 and you have used half of it, the commission will be calculated only on the USD 1,000 used.

The account limit is fortunately not as expensive as it may seem. It is also often more profitable than a cash loan. The interest rate on the limit is usually around 12 – 16%, while the APRC of cash loans is often 18%, and there are also more expensive offers.

The credit limit on personal and company accounts

An account with a credit limit is really everyday life among financial products. If you do not have a personal account yet or have not used the credit limit, you should think about which bank has prepared the best promotion in this area.

Banks wanting to attract new customers often offer them a limited account. This means that as a new customer of the bank and not using any financial products, you immediately receive a kind of trust loan and a credit limit is assigned to your account. Such an offer has been prepared.

The offers of other banks are also popular, where within the credit limit we can be given a really large sum. The Good Credit Bank has prepared a proposition for its clients: the Good Credit credit limit – up to USD 150,000 in additional cash.

If you are interested in large limits, you can also check the Fine Bank credit limit. The bank grants up to USD 50,000 limit, and currently, the “Welcome offer” promotion is underway, thanks to which you can use an individual credit line without a commission for granting the limit.

If we look deeper, we can see that E-Money has just prepared a spring promotion E-Money credit limit – up to 90 days without interest (APR 9.99%). In addition, he provided customers with a revolving loan calculator so that they can easily and quickly check all loan costs.

And what does the limit case look like for business accounts? It will be difficult to find a company account with a credit limit for starters, but it is not difficult to find a revolving loan offer that works in company accounts on the financial services market.

An example would be E-Money, which grants companies a limit from day 1, provided that the creditworthiness is assessed positively. Under this limit, you can get up to USD 150,000.

Credit limit – summary

Credit limits are a good option for people who want to have a security cushion in case of unplanned expenses. When time plays a major role, you will not need to complete documents, apply for a loan, and wait for a decision.

The account limit can be dangerous, however, if at some point you overdo the expenses and the total credit limits exceed your monthly inflows. This will mean that you are unable to pay back the used limit on an ongoing basis, and the last option will be a consolidation loan.

Remember that if you belong to people who spend money very quickly and who have on their account, it is better to give up the limit at all. Late repayments, apart from additional costs, also generate additional problems.

Failure to meet the repayment deadline will definitely be recorded in the Credit Information Bureau and will have a direct impact on your creditworthiness.

Therefore, if you really need additional funds and you do not trust yourself in this matter, it is better to use a one-time cash loan instead of a revolving limit.