Your credit limit determines how much can be charged to your account before a payment is required. It is set based on your application.

Your credit limit covers transactions invoiced for the previous billing period, plus any purchases made in the current billing period before you make a payment.

For example, if you are on a monthly billing cycle, your credit limit needs to cover the purchases made for last month, plus any purchases up to the time you pay the invoice for last month, which can be up to 51 days.