High Limit Credit Cards

A “high” credit limit can be defined as a spending limit that is above the average for your credit score. According to the latest data available from Experian, the average credit card limits were as follows in 2015:
 

There are two ways to get a higher credit limit: 1) request a credit limit increase for an existing card; or 2) apply for a new credit card that has a higher starting limit.

Both options will trigger a hard inquiry into your credit history, which may lead to temporary credit score damage. And neither is likely to be available to you unless you’ve used your newest credit card responsibly for at least six months. It may take your credit score that long to recover after opening a new account, and you need your score to be at its best to get a higher credit limit. Plus, most credit card companies require cardholders to prove themselves for that long before providing more spending power.

Many credit card companies will allow you to request a higher credit limit directly from your online account. Others require you to call. You can learn more and get tips for success from WalletHub’s credit increase guide.

At the end of the day, all credit cards have a limit. Some are just higher than others. And the highest limits may be as good as nonexistent, depending on how much you spend.

The idea that some credit cards are limitless comes from the fact that some cards do have a feature called No Preset Spending Limit (NPSL). But NPSL credit cards aren’t unlimited. Rather, their limits simply aren’t “preset,” or established when you open your account. NPSL card limits are instead set on a monthly basis, with the amount depending on your recent payment habits and the overall economic climate.

For example, charge cards, Visa Signature credit cards and World Mastercard credit cards typically have this feature. And unfortunately, having no present spending limit can make life a bit difficult. You won’t know how close you are to running out of spending power at any given time, for one thing. It will be hard to maintain reasonable credit utilization. And it could even hurt your credit score through no fault of your own.

Check out WalletHub’s NPSL credit card study to learn more.

Yes, charge cards do have spending limits. More specifically, charge cards have a feature called “no preset spending limit,” or NPSL for short. Unlike a normal credit card, for which you will be assigned a credit limit at the time of account opening, NPSL credit cards have dynamic limits that are established on a monthly basis using the latest information available to the issuer. Your limit might be lower the month after you miss a payment, for example. And the same could be true if borrowers across the country encounter payment problems.

Charge cards also have a built-in spending limit. You have to pay your bill in full every month to continue making purchases. So at the end of the day, you can only charge what you can afford to repay within the month.

If you’re interested, check out the latest charge card offers.