While having a higher credit limit may boost your credit score, be cautious when raising credit limits. The most obvious reason to avoid having too much credit available is that you could spend more, further increasing debt and actually hurting your credit score if you get in over your head.
Many credit scoring formulas look at credit utilization as a significant factor that affects your credit score, and a lower utilization is better. Having a higher credit limit gives you more ability to spend, which can translate into greater rewards.
Increasing your credit limit lowers your credit utilization ratio. If your spending habits stay the same, you could boost your credit score if you continue to make your monthly payments on time. But if you drastically increase your spending with your increased credit limit, you could hurt your credit score.
The FICO credit-scoring model will ding your credit score if the amount of credit you've used is close to the total amount of the credit available to you. That's because lenders consider you to be at risk of taking on too much debt, making it more difficult for you to make future payments.
In general, you could get approved for a credit card with a $20,000 limit if you have excellent credit, a lot of income, and very little debt.
In 2020, the average credit card credit limit was $30,365, according to Experian data. This was a 3% decrease from the previous year's average. However, average credit card limits also vary by age range, and people who are new to credit or rebuilding their credit may have lower credit limits.
The average credit card limit for a 25-year-old is around $3,000. To get to that number, it's important to know that the average credit score in that age bracket is 650, which is fair credit.
A high-limit credit card typically comes with a credit line between $5,000 to $10,000 (and some even go beyond $10,000). You're more likely to have a higher credit limit if you have good or excellent credit.
Request a credit limit increase. If you have credit cards with lower credit limits, now is a good time to consider asking for a credit limit increase. If you've been paying your credit card bills on time, your card issuer will likely agree to raise your limit.
In most cases, your transaction will simply be declined—but if you're close enough to your credit limit that you have to worry about your next purchase or interest charge pushing you over the top, it's time to think about paying off your credit card debt.
The credit limit you can get with a 750 credit score is likely in the $1,000-$15,000 range, but a higher limit is possible. The reason for the big range is that credit limits aren't solely determined by your credit score.
Generally, a card issuer invites only their most loyal customers who spend upwards of six-figures or more a year to become a black cardholder.
What's considered a “normal” credit limit in the U.S.? While limits may vary by age and location, on average Americans have a total credit limit of $22,751 across all their credit cards, according to the latest 2019 Experian data.
Reasons your credit line gets boosted
You've used your existing credit line responsibly. Your credit card offers a built-in path to a higher credit limit. You've reported an increase in income. It may help the card issuer with retention.
An 800-plus credit score shows lenders you are an exceptional borrower. You may qualify for better mortgage and auto loan terms with a high credit score. You may also qualify for credit cards with better rewards and perks, such as access to airport lounges and free hotel breakfasts.
Most companies check your credit reports and gross annual income level to determine your credit limit. Factors that issuers like to consider include your repayment history, the length of your credit history and the number of credit accounts on your report.
If you're applying for a credit card, for example, the income amount you put on your signed application is usually what the creditor will use to help determine your credit limit. Lenders sometimes go a step further and require that you verify your stated income. This is common with auto loans and mortgages.
Once you've made a request, you should generally wait 6-12 months before submitting another. You can ask for another credit limit increase earlier if your financial situation changes, though. For instance, receiving a raise from your job is a great time to ask for an increase since you'll have more money to spend.
First of all, a 900 credit score isn't really possible. And just 1% of the population can achieve a credit score of 850, so there's a certain point where trying to get the highest possible credit score isn't realistic at all. Only a few credit score models have a credit score limit of 900 as is.
If you have been using credit for only six months or a year, it's unrealistic to expect a score in the high 700s. Still, it is possible to establish excellent credit — a score of 800 or higher, for example — in your 20s.