What is a credit line on a credit card?

A credit line on a credit card is the maximum amount a credit card user can charge to the account, including purchases, balance transfers, cash advances, fees, and interest. “Credit line” is a synonym for “credit limit” when referring to a credit card. The amount of a credit card’s credit line can be found on the account’s monthly statement.

The average credit line on a credit card is about $29,800, according to 2023 Experian data. Some of the highest credit lines reported by credit card users range from $10,000 to $100,000. The lowest credit lines are usually around $200 to $300.

Factors That Affect Your Credit Line

The amount of a credit card’s credit line depends on a number of factors, including a cardholder’s existing debt, annual income, credit history, and major obligations such as housing payments. People with limited credit history, a history of credit mistakes, or low annual income may end up with a credit limit on the lower end of the spectrum. But those who make on-time payments, maintain low credit utilization, and don’t spend more than they can afford to pay off every month may eventually get a bigger credit line.

It may be possible for a credit card’s balance to exceed the account’s credit line under certain conditions. But it’s important to keep your credit card balance well below the amount of your credit line. You could get charged an over-limit fee for going over, if you’ve opted in for the ability to do so. And a balance that takes up most of your credit line will result in high credit utilization, which is bad for your credit score.