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Your credit limit is the maximum amount of money you can borrow with a credit card at any one time. The credit issuer will take into account the limit you request, but will decide the credit limit you're approved for based on several other factors. This includes your income, assets, expenses, credit history and personal circumstances.
As credit limits are subject to the credit card company's lending criteria you won't know your exact limit until your application is approved and there's no way to figure it out in advance. All you'll know for sure is that if your application is approved, you'll receive at least the minimum credit limit for that card.
Use this guide to learn what impacts your credit limit, compare cards with high and low minimum credit limits and learn how to calculate the credit limit range that will suit your budget.
Whether you’re applying for a new credit card or want to increase in your existing card’s credit limit, the bank or provider will look at a range of factors to assess your application. This usually includes:
Online credit card limit calculators can give you some idea of what your credit limit might look like. Unfortunately, you can't determine exactly what your credit limit is and you can’t be entirely sure of how your credit card provider will calculate your limit.
If you do end up using an online credit card limit calculator, bear in mind that the result should only work as an indication of what you can look forward to, and don’t expect your card provider to rely on similar parameters. At the end of the day, it’s your card provider who establishes exactly what your credit limit should be.
While there is no way to work out the exact credit limit you'll be offered, consider the following to estimate a credit limit that's affordable for you:
Considering these factors based on your own financial circumstances will help you figure out the band of credit limit that fits your needs. Alternatively, you could request a specific credit limit based on your budget.
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If your credit card is not at its maximum allowed credit limit, you can consider applying for an increase in its limit. You usually need to submit a request to increase your credit limit and your provider will assess your credit score as well as your spending and repayment habits. Here are some steps you can take before you request a credit limit increase:
Increasing your card’s credit limit gives you access to more money when you need it and decreasing it can help you keep your expenses in check. In either case, it is important that you account for the following.
The credit limit your card comes with defines how much you can spend using your card. While changing a card’s existing limit is possible, it requires several considerations. Some of the factors that can affect your application for an increase in credit limit include your income, your creditworthiness and the card provider. Increasing your credit limit may seem like the resolution to your financial problems, but there are a number of considerations you should also be wary of before applying for an increase.
With credit card providers that accept online applications for increase in credit limit, you can complete your application in around five to 10 minutes, provided you have all the required information close at hand.
This can vary from one card provider to the next, where while some inform you of their decision almost immediately, some others can take a few days.
New credit card accounts typically don’t qualify for credit limit increases, and you’ll have to wait for six to nine months. Once you get an increase or decrease in your credit limit, you cannot request for another one in the next three to six months, depending on your provider.
Yes, you can, but this should be within the maximum allowed limit of the given card, and it remains subject to approval.
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