Is a $12,000 credit limit good?

Your credit limit should be at least 3 times higher than your usual monthly spending. That's because your overall credit utilization ratio should stay below 30%. If your spending exceeds that, you risk damaging your credit score. That's why it's important to know what credit cards usually offer as a credit limit before applying for one.... read full answer

What you should know about credit card credit limits:

• Credit card limits can be as low as $200.
• Some high credit limit credit cards can offer limits starting with $5,000 and upwards of $10,000.
• High credit limit credit cards will generally be available only to applicants with good or excellent credit, and a high enough income to afford payments.
• On the other side of the spectrum, high limit secured credit cards are open to applicants with bad credit, as they allow higher-than-average security deposits that establish credit limits and serve as collateral.

How to manage your credit limits and spending:

Whenever your spending habits change and your credit utilization ratio grows, you should request a credit limit increase, or apply for a new credit card. Your credit utilization accounts for roughly 30% of your credit score, so both are viable options if your credit card spending goes up.

In addition to a higher credit limit, a new credit card can also come with advantages, like extra rewards and better rates. It also enables you to adopt the Island Approach and compartmentalize the use of your cards to maximize rewards and minimize finance charges. Feel free to also check out WalletHub's guide on how credit limit is determined, to get a better sense of what you can expect.

The highest credit card limit you can get is over $100,000 according to anecdotes from credit card holders. But like most credit cards in general, even the highest-limit credit cards will only list minimum spending limits in their terms. The best high limit credit cards offer spending limits of $10,000 or more.... read full answer

In order to get $100,000+ in spending power, you need a lot of assets and income, little debt, and a spotless credit history. Let’s look at some of the most popular offers with high floors and, hopefully, even higher ceilings so you can see for yourself.

Highest Credit Card Limits of 2023

Again, keep in mind that most credit cards only disclose minimum credit limits, if that. So, your limit could be a lot higher based on your creditworthiness.

In order to have a better chance of getting the highest credit card limit possible in your situation, you should make sure to always pay bills on time, use 30% or less of your available credit, pay down your debts, save money for the future, and otherwise make good financial decisions.

A credit limit on a credit card is the maximum dollar amount a cardholder can access for purchases, balance transfers, cash advances, fees and interest charges combined. Though credit card cash advances have their own credit limit, that limit is part of the overall credit limit.

A credit card’s limit is determined when the credit card applicant is first approved for an account, and it’s based on the applicant’s credit history, annual income, current debt level, and overall creditworthiness. The card issuer wants to make sure a cardholder can pay their minimum payment, even if the balance approaches the credit limit, so a limit is set to reflect how much a person can afford. If your income is low, for example, you may get approved for a low starting credit limit.... read full answer

A starting credit limit isn’t permanent, however. There are ways to get a credit limit increase as you build a relationship with your card issuer. Paying your bills on time and staying well below your credit limit are good habits that could lead to credit limit increases later. Some issuers will raise a credit limit on a credit card without a request from the cardholder, but others will wait until you ask. Keeping the card issuer updated with your current annual income is one way to get a credit limit increase without asking. If you get a raise or promotion at your job, your card issuer may be much more inclined to approve a limit increase.

That said, it’s worth noting that a credit card limit can also be lowered. Cardholders who miss payments or rack up a lot of debt may have their credit card limit decreased - often without notification. It’s a good idea to keep an eye out for credit limit changes so you don’t accidentally go over your limit.

As long as your balance is less than or equal to your credit limit, no penalty fees will be charged. Furthermore, credit card companies can only charge over-limit fees if you have actively opted-in for the ability to charge more than your credit limit.