Loans, Credit Scores, and Consumer Credit Practice Test

In revolving credit, the upper limit you’re approved for on that account is the credit limit. This is the maximum balance the lender allows you to carry at any time, and it serves as the ceiling for how much you could borrow on that line of credit. You can borrow up to that limit, repay some or all of it, and then borrow again up to the same limit. The amount you could borrow right now is actually your available credit, which is the credit limit minus any current balance. But the maximum possible borrowing power on the account is defined by that credit limit itself.

So the best answer is the credit limit, since it represents the overall borrowing ceiling for the revolving account. The unpaid balance is what you currently owe, not the maximum you could borrow; installment credit refers to a different loan type with fixed payments; revolving credit describes the account type, not the limit.