Credit Limit

The maximum balance you can carry on a single card.

Issuers set initial limits based on income + credit profile. Higher limits help utilization ratios — a $10,000 limit with $500 of spend is 5% utilization; the same $500 on a $1,000 limit is 50%. Request a credit-limit increase (CLI) every 6-12 months once you have a payment history.

Reviewed by the ClearValue Editorial Team.