What is a Credit Limit?

Your credit limit is the absolute maximum amount that your card issuer will let you borrow using your credit card.

Each time you buy something, the amount of the purchase is added to your credit card balance. You can subtract your balance from your credit limit to figure out how much more you can spend using the card. When you make a payment, your balance goes down, and the amount you can spend increases by that payment amount.

Read more at Credit Karma.