Do you know the difference between Cash Limit and Credit Limit?

We all deal with banks in a direct or indirect way in our day to day daily life.

And Credit Cards have concurred a bit part of out money.

While I was reading business news, I got confused with following 2 terms.

1. Cash Limit


2. Credit Limit

It’s pretty simple, but there can be some who gets confused, like me!!!

Well, to start with both are CREDIT CARD related terms.

Cash Limit means:

The maximum amount of cash that your CREDIT CARD allows you to WITHDRAW from an ATM.

Credit Limit means:

The maximum amount which is ALLOWED by your bank to spend (cash advance + sales transactions + any financial charges + any fees) on your CREDIT CARD.

Hum... Hope it’s pretty clear now.

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