"In the abstract, a higher credit limit should help your credit score because it will lower your credit utilization ratio as long as how much you owe remains constant or goes down," says Rossman. But, "if there's any chance you'll view a higher credit limit as an excuse to get deeper into debt, you should avoid it."
How does asking for a higher credit limit affect your credit score? As long as you are responsible with how you use your credit card, an increase in your credit limit should reduce your credit utilization rate. And the lower your utilization rate, the better your credit score in the long run.
A higher credit limit obviously gives you the opportunity to increase your debt, but you also run the risk of paying more in interest too. ... If you receive a credit limit increase, it also increases the chance that you won't be able to pay your bill in full.
You can't exactly predict a credit limit, but you can look at averages. Most creditworthy applicants with stable incomes can expect credit card credit limits between $3,500 and $7,500. High-income applicants with excellent credit might expect a credit limit of up to or more than $10,000.
A high-limit credit card typically comes with a credit line between $5,000 to $10,000 (and some even go beyond $10,000). ... If you do have a high credit limit, just make sure that you spend within your means and avoid charging more than you can afford.
The average credit card limit for a 25-year-old is around $3,000.
“Having a zero balance helps to lower your overall utilization rate; however, if you leave a card with a zero balance for too long, the issuer may close your account, which would negatively affect your score by reducing your average age of accounts.”
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. But there are no credit cards with $20,000 limits guaranteed as a minimum.
The amount of money you make generally affects the amount you can afford to pay. While you have a better chance of getting approved for a higher credit limit if you have a high income, there's no guarantee your income will get you a high credit limit. Other factors, like the type of credit card, still come into play.
JP Morgan Chase Palladium Card
The JP Morgan Chase Palladium credit card is made of laser-etched palladium and gold, and it is reserved for consumers who have a relationship with JP Morgan's private bank, wealth management, or investment bank.
For example, if you have a $500 credit limit and spend $50 in a month, your utilization will be 10%. Your goal should be to never exceed 30% of your credit limit. Ideally, you should be even lower than 30%, because the lower your utilization rate, the better your score will be.
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.
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