What is a Good Credit Limit? | Chase (2024)

What’s considered a “good” credit limit depends on a few key factors. If you're just starting out, a good credit limit for your first card might be around $1,000. If you have built up a solid credit history, a steady income and a good credit score, your credit limit may increase to $5,000 or $10,000 or more — plenty of credit to ensure you can purchase big ticket items. Of course, this isn’t necessarily designated to just one credit card.

In this article, you will learn about:

  • Why your credit limit matters
  • How your credit limit is determined
  • Average credit limit
  • How to increase your credit limit

Why does your credit limit matter?

Your credit limit matters when it comes to having a good credit utilization ratio, which is a major factor that is calculated in your credit score. This ratio is the amount you owe towards your credit card(s), divided by your total credit card limit.

Let's say you have two credit cards, one with a limit of $5,000 and one with a limit of $2,000. On the $5,000 card you've accumulated charges of $2,500 while on the $2,000 card you've only spent $500. Between the two cards, your credit limit is $7,000, but considering your current debts, your credit utilization stands at 43% — above the recommended limit of 30%. So, the higher your credit limit, the better your chances are for lowering your credit utilization ratio, which should ideally be around 30% or lower.

Credit limits can also help indicate how much a lender finds you responsible for making back your payments. A higher credit limit allows you to make more purchases and spend more money, which comes with important responsibilities and the ability to balance out your finances. However, it does come in handy to have a high credit limit when purchasing big ticket items. It also helps keep your credit utilization lower than if you had a smaller credit limit.

How is your credit limit determined?

Both your credit score and your credit report are important factors that card issuers weigh when considering how to determine your credit limit. A higher credit score shows you have a good track record of paying your debts back and being financially responsible, so your credit limits may be higher vs. if you have a lower credit score. With regard to both credit score and credit report, the following factors are especially important to lenders as they help demonstrate your creditworthiness:

  • Payment history
  • Credit history
  • Credit mix

Average credit limit

A single credit card can have a credit limit of anywhere from $500 to $10,000, depending on various factors like the type of card, your credit score and more.

According to Experian™, one of the three main credit bureaus, the average total credit limit across multiple cards was about $30,000 in 2021.

In 2022, the average credit limit for the baby boomer generation was about $40,000, while Gen X had about $36,000 in credit limit and millennials had an average of about $30,000.

As you can see, the older you are the better the chances you have of having a higher credit limit because of the time that’s been built up to improve your credit history, payment history and more. Gen Z, on the other hand, had about $11,290 in average credit limit as of 2022.

How to increase your credit limit

To help increase your credit limit, you may want to consider taking the following steps:

  • Update your information to your issuer. Since debt/to income ratio also helps determine limit, you’ll want to let your issuer know if you’ve gotten a raise, a new job, etc.
  • Lower your credit utilization. Demonstrating that you don't need to use your entire credit limit each month is a great way to show lenders that you understand credit utilization and would be a good candidate for a higher credit limit.
  • Improve your credit score. A higher credit score can help land you a higher credit limit as well as lower annual percentage rates (APRs). One way to help improve your score is by enrolling for free in Chase Credit Journey® which will help you keep track of your score, payment history and provides you with a personalized action plan with tips to learn more about how you can improve your credit score over time.
  • Request a higher credit limit. If you’re in good financial standing with your current issuer, they may approve you for a higher credit limit for your current credit card should you request one.

In summary

Remember, regardless of what your current credit limit is, it doesn’t mean you should be spending up to that amount. Be sure to keep in check your utilization ratio and focus more on your payment history. Your credit limit is helpful when it comes to making large purchases, but it's important to not spend more than you can pay back in a timely manner.

Healthy financial habits in the long run can help increase your score and, in turn, grant you access to higher credit limits, which may improve your overall financial well-being in the future.

What is a Good Credit Limit? | Chase (2024)


What is a Good Credit Limit? | Chase? ›

If you're just starting out, a good credit limit for your first card might be around $1,000. If you have built up a solid credit history, a steady income and a good credit score, your credit limit may increase to $5,000 or $10,000 or more — plenty of credit to ensure you can purchase big ticket items.

What is a normal credit limit? ›

According to a recent report by Experian, the 2022 average credit limit for Americans across all credit cards was $28,930. However, individual credit card limits can be as low as $200 depending on the consumer's age, employment status and credit history.

Is $20000 a good credit limit? ›

Yes, $20,000 is a high credit card limit. Generally, a high credit card limit is considered to be $5,000 or more, and you will likely need good or excellent credit, along with a solid income, to get a limit of $20,000 or higher.

What is a good credit limit to set? ›

How to figure out a good credit limit for you. A simple rule of thumb to decide if you have a good credit limit is to consider how much you regularly spend between payments. Ideally, you don't want to have your average credit card balance higher than 30% of your credit card limit.

What credit limit can I get with a 750 credit score? ›

What credit score is needed to get a high-limit credit card?
VantageScore 3.0 credit score rangeAverage credit card limit
Mar 15, 2024

What is a realistic credit limit? ›

What is considered a “normal” credit limit among most Americans? The average American had access to $30,233 in credit across all of their credit cards in 2021, according to Experian. But the average credit card balance was $5,221 — well below the average credit limit.

How to get a $30,000 credit card limit? ›

To get approved for high-limit credit cards, you'll most likely need to have good or excellent credit and a steady income to support a higher credit limit. Picking the right card is important, too. You may be able to find the minimum starting credit limits listed in some cards' terms and conditions.

What credit card has a $100000 limit? ›

On our list, the Ramp Corporate Card and the Chase Ink Business Premier Preferred Credit Card offer the best opportunity to access a $100,000 credit limit. Ramp determines your spending limit based on factors like your cash-on-hands and monthly expenses, while Chase uses creditworthiness to calculate your credit limit.

How do people get 20k credit cards? ›

Improve Your Credit Score.

Your credit score is an important factor that card issuers consider when determining your credit limit. Having a high credit score and a long and positive credit history can show that you are a responsible and low-risk borrower, and therefore qualify for a higher credit limit.

What is the average credit limit for a 25 year old? ›

Generation Z (18-25): $11,290

Generally, the average credit limit goes up with age. Baby boomers have the highest overall credit limits, and Gen Zers have the lowest. That's expected. Credit issuers typically start new credit card users with low limits, then bump these up as users prove themselves trustworthy.

What is the average credit card limit in USA? ›

When averaging credit limit data across generations from Experian®, the average credit limit in America is $28,929.80. Your credit card limit depends on your credit score, age, income, and other factors. Credit card limits can range anywhere from $300 to more than $100,000.

What is the average Amex credit limit? ›

The average credit limit for members who have matched with similar cards is $13,202, with $5,000 being the most common. The Platinum Card® from American Express does not have a traditional credit limit and was compared to similar premium cards.

Who gives the highest credit limit? ›

Highest Credit Card Limits of 2024
  • Chase Sapphire Reserve®: $10,000+ credit limit.
  • Chase Sapphire Preferred® Card: $5,000+ credit limit.
  • Wells Fargo Reflect® Card: $1,000+ credit limit.
  • Wells Fargo Active Cash® Card: $1,000+ credit limit.
  • Chase Freedom Unlimited®: $500+ credit limit.
Jan 15, 2024

How rare is a 750 credit score? ›

Your credit score helps lenders decide if you qualify for products like credit cards and loans, and your interest rate. You are one of the 48% of Americans who had a score of 750 or above as of April 2023, according to credit scoring company FICO.

What is a good credit score to buy a house? ›

Generally speaking, you'll likely need a score of at least 620 — what's classified as a “fair” rating — to qualify with most lenders. With a Federal Housing Administration (FHA) loan, though, you might be able to get approved with a score as low as 500.

Is there a big difference between 750 and 800 credit score? ›

This is because only 1% of these individuals will become delinquent on their loans in the future. While credit scores of 800 or above are labeled “exceptional,” a score of 750 will likely get you some of the best rates available for auto loans and mortgages.

Is $2500 credit limit good? ›

A $2,500 credit limit is good if you have fair to good credit, as it is well above the lowest limits on the market but still far below the highest. The average credit card limit overall is around $13,000. You typically need good or excellent credit, a high income and little to no existing debt to get a limit that high.

How much credit limit can I get with 700 credit? ›

It's really hard to pinpoint what credit limit you'll be granted with a credit score of 700. But since it's good credit, you maybe able to get as high as a $5,000 limit. A credit score of 750+, which is excellent credit, should put you in the $10,000 limit zone. But that's not a given.

Is $2,000 credit limit good? ›

Yes, a $2,000 credit limit is ok, if you take into consideration that the median credit line is $5,394, according to TransUnion data from 2021.

Is 100k in available credit good? ›

The average credit card limit overall is around $13,000, and people who have limits as high as $100,000 typically have good to excellent credit, a high income and little to no existing debt.

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