If your application for a credit card is approved, one of the first pieces of information you’ll receive is your credit card limit, which is the maximum amount of money you can charge. You may be asking yourself, “What is a good credit limit?”

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Credit card limits can vary greatly, sometimes by thousands of dollars. So, if you’re granted a $500 credit limit, is that “bad” compared to a $10,000 limit? Or is a lower limit better? The answer is different for every person.

How Is Your Credit Card Limit Decided?

Credit card companies assign credit limits in a number of different ways.1 Some companies offer a variety of card tiers (with names like gold and platinum), and each tier has a predetermined credit limit. Your credit score and income level will affect which tier you’ll be approved for.

Credit limits also can be based on your credit score. The card company might have different limits for each score range, and you’ll be granted a credit limit in line with your score.2

Some credit card companies take into account your personal situation and assign a credit limit based on a combination of factors. These could include your credit score, income level, debt-to-income ratio and the limits on your other cards.

Can You Change Your Credit Limit?

If your credit needs have changed since you first got your card, you can make a case for an increased credit limit by calling your credit card’s customer service department. Among other criteria a cardholder must meet, the issuer also will consider whether the card has been used responsibly overall, such as the cardholder paying bills on time and avoiding maxing out the card.

When a credit card company grants you a line of credit, they’re taking on the risk of lending you money. The card issuer usually requests your current income, assets, housing payment and housing type among other components, and pulls your credit score and credit report to determine your new credit limit.

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How Credit Limits Affect Your Credit Score

Your credit score is based on a variety of factors and inputs — one of which is your credit card limit. In the end, there’s no such thing as a “good” or “bad” credit limit — it depends on the individual account holder’s use of their credit card.


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