What Credit Card Limit Can I Get?

Credit card Q&A: “What credit card limit can I get?”

Are you curious what you’ll qualify for in the way of a credit card limit, or if you’ll even be approved to begin with.

[How do you get a credit card?]

Well, unfortunately, it’s always a bit of a mystery until after you apply and receive your credit card (and its related terms).

That’s right – there’s no turning back once you hit the apply button. The credit inquiry will show up on your credit report and the credit card issuer will make their decision.

You may have been hoping for a $10,000 credit card limit, only to find out minutes later that they approved you for a measly $1,500. At that point, you may be fuming, wishing you hadn’t even bothered in the first place.

Guessing What Your Credit Card Limit Might Be

While this may be a common scenario, you can certainly clue yourself in a bit before you apply for a credit card.

Credit card issuers tend to look at two main things when determining your credit limit, those being your credit score and your income.

It used to be household income, but now it’s just your income, since living with your wealthy parents doesn’t necessarily mean they’ll pony up if you can’t pay your debts.

Credit card companies also ask for employment information (and schooling prior to that) to get a better idea of what you make, considering the fact that you simply state a number on the credit card application.

They then take that information and look at it alongside your credit score, along with the information in your credit report, to determine your credit card limit.

If you already have high credit limits on existing credit cards, there’s a decent chance you’ll get similar limits on any new credit card you apply for.

Conversely, if your existing credit limits are low, don’t be surprised to receive similar limits on subsequent credit cards (unless you input much higher income on the credit card application).

Lower Credit Scores and Income = Lower Credit Card Limits

Generally, those with lower credit scores and lower gross annual income will receive lower credit card limits, and vice versa.

So a consumer with an average credit score and low income who applies for a credit card may receive a $3,000 credit card limit, while a consumer with an excellent credit score and higher-than-average income may receive a $25,000 credit card limit.

Of course, it’s hard to just say you’re this, so you’ll get that.

The takeaway is higher income and credit scores tend to lead to higher credit card limits.

Additionally, those with limited credit history will see lower limits than those with proven track records of supporting large amounts of debt, so understand that it takes time.

*Keep in mind that charge cards don’t have a pre-set spending limit, but must be paid in full each month.

Tip: Having a lot of outstanding credit card debt can lower your credit score, so it’s best to keep balances to a minimum, regardless of your credit card limit.