Listen to a Business English Dialogue about Credit limit
Roy: Hey Hannah, do you know what a credit limit is?
Hannah: Yes, it’s the maximum amount of money a credit card company allows you to borrow.
Roy: That’s correct. It’s important to manage your spending within your credit limit to avoid penalties or fees.
Hannah: I always make sure to keep track of my spending and stay well below my credit limit.
Roy: That’s a good practice. Exceeding your credit limit can negatively impact your credit score.
Hannah: Right, I’ve heard that it can lead to higher interest rates and make it harder to get approved for loans in the future.
Roy: Exactly. It’s also important to regularly review your credit limit and consider requesting an increase if needed.
Hannah: I’ll keep that in mind. How often do you think it’s a good idea to request a credit limit increase?
Roy: It depends on your financial situation, but typically every six months to a year is a good timeframe to reassess.
Hannah: Thanks for the advice, Roy. I’ll make sure to monitor my credit limit and spending habits closely.
Roy: No problem, Hannah. It’s important to stay proactive when it comes to managing your credit.