laura has applied for and received her first credit card! her credit card allows her to charge up to $1,000…

laura has applied for and received her first credit card! her credit card allows her to charge up to $1,000 of goods and services. this amount is known as a/an: credit limit credit rate credit score interest rate

laura has applied for and received her first credit card! her credit card allows her to charge up to $1,000 of goods and services. this amount is known as a/an: credit limit credit rate credit score interest rate

Answer

Brief Explanations:

  • Credit limit: The maximum amount a credit cardholder can borrow or charge on their credit card. In this case, Laura can charge up to $1,000, which fits the definition of a credit limit.
  • Credit rate: This term is not a standard financial term in the context of credit cards. It may be confused with other terms like interest rate or credit score.
  • Credit score: A numerical representation of a person's creditworthiness. It has no relation to the maximum amount that can be charged on a credit card.
  • Interest rate: The cost of borrowing money on a credit card (e.g., the percentage charged on outstanding balances). It is not related to the spending limit.

Answer:

credit limit