Having a high credit limit on your credit card can be a great asset. But what is considered an average or normal limit these days? And if your limit seems low to you, what can you do to get it raised?
This comprehensive guide will explore the ins and outs of credit card limits - from what the current averages are to smart strategies for increasing your own limit. Read on to empower yourself as a consumer and optimize this important element of your finances.
What Does Credit Card Limit Actually Mean?
Your credit card limit, also known as your credit line, is the maximum amount that you are allowed to charge on your card. It functions as a spending cap that credit card companies establish based on your financial profile.
Exceeding your limit can result in penalties, declined transactions, and even long-term damage to your credit score. This makes it crucial to understand your limit and keep spending below it.
Average Credit Card Limits in 2025
Average credit card limits can fluctuate over time along with economic factors. Here is a look at current averages among U.S. cardholders in different demographics:
Overall - The average credit card limit across all cardholders is $7,854. This represents a nearly 16% increase from 2020 figures.
By Age - Credit limits tend to correlate strongly with age. Limits among 18-24 year olds average just $1,730, while limits among those 65+ average $12,290.
By Income - High earners also typically have higher limits. Those making under $20k have an average limit of $3,187 versus $14,733 for those making over $100k.
By Credit Score - As you'd expect, limits rise alongside credit score. Subprime borrowers with scores under 579 have an average limit of $2,682 compared to $15,929 for those with excellent credit.
As you can see, your individual credit card limit can deviate substantially from the general average based on your specific financial profile. But this data provides a helpful benchmark.
If your limit seems disproportionately low, the next question becomes - how can you get it raised?
Key Factors That Influence Your Credit Card Limit
When determining any individual cardholder's credit limit, issuers generally take into account:
Your Credit Score
This gives the best snapshot of your overall borrowing and repayment history. Individuals with higher credit scores instill greater confidence in lenders and are seen as lower risks.
FICO score guidelines for limits are:
- Very poor (under 579) - $1,000 - $3,500
- Fair (580-669) - $3,500 - $7,000
- Good (670-739) - $7,000 - $15,000
- Excellent (over 740) - $10,000+
Improving your credit score is key for any substantial, long-term limit increase.
Your Income
Lenders want reassurance you make enough money to afford repayments. Stable and higher incomes allow for higher limits. Provide recent pay stubs when requesting a raise.
Your Existing Debt-to-Income Ratio
Lenders calculate this ratio comparing your monthly debts to gross monthly income. The lower your existing obligations, the more confidence creditors have extending you larger limits. Aim for a ratio below 30%.
5 Proven Strategies to Increase Your Credit Card Limit
Ready to expand your purchasing power? Here are smart tips to get a higher limit:
1. Request a Limit Raise from Your Issuer
This is the most direct path to a higher limit. Call your credit card company's customer service line and ask them to review your account. Be prepared to provide income verification.
If you've been responsibly managing the card and your credit score is strong, they will likely approve a raise. Be persistent and continue requesting periodic reviews.
2. Apply for a Different Card with a Higher Limit
Applying and qualifying for an entirely new credit card can provide access to higher limits, particularly premium travel cards. This also diversifies your sources of credit.
Downsides are the hard credit check and impact on your average account age. But it can be worthwhile long-term.
3. Improve Your Credit Utilization Ratio
This measures how much of your total credit limit you currently have tapped across all cards. Experts recommend keeping this below 30%.
If your ratio is too high, ask issuers for limit raises or pay down balances. This signals you can handle more credit.
4. Enhance Your Credit Score
Good credit hygiene like paying bills on time, keeping accounts open longer, and limiting hard inquiries will steadily strengthen your score. Aim for at least a 670 FICO score.
Higher scores make lenders comfortable extending you higher limits. Be patient and let your profile improve.
5. Wait It Out
If you've held your card responsibly for at least 6 months, issuers may automatically raise your limit without you requesting it.
Let some time pass for them to observe your responsible usage patterns.
How Credit Card Limits Impact Consumers
Higher credit limits provide greater spending flexibility and improved cash flow. But they aren't universally positive. Consider impacts on:
Your Spending Habits
Research shows consumers are primed to spend more when given a higher credit ceiling. Be wary of overspending just because your limit increased. Stick to healthy budgets.
Your Credit Utilization
Using a large portion of expanded limits can negate benefits to your credit score. Keep balances low and don’t “max out” new limits.
Your Risk of Overspending
It’s easier to accidentally go over your limit or develop balances hard to pay off when limits are high. Track spending diligently to avoid this.
Your Available Credit
Higher limits boost your total available credit, which helps your utilization ratio and can offset risks like new hard inquiries.
Overall, increased limits are best utilized responsibly. Don’t take them as license to overspend. Focus on the benefits to your credit mix and keeping balances low.
The Bottom Line
Your credit card limit has a substantive impact on spending power and credit health. While the average limit is around $7,854, your personalized limit depends on creditworthiness.
Improving your credit score and debt levels while keeping good relationships with issuers can help boost your limit over time. But be strategic - don’t obtain more credit than you need or can manage.
With some diligence and responsible habits, you can master the nuances of credit limits. A higher limit used wisely unlocks key benefits. Just make sure you thoroughly understand its implications before charging forward.
What strategies have you used to increase your credit limit successfully? Share your tips and tricks in the comments below!