So, you’ve got the basics of credit limits down—now you’re probably wondering: what actually qualifies as a good credit limit?
Whether you’re eyeing an upgrade, new rewards, or more flexibility, choosing the right limit (and knowing when to ask for more) can put you in a stronger financial position.
Let’s break it down:
here's a quick glance at what we'll cover
what’s considered a good credit limit?
A “good” credit limit isn’t one-size-fits-all. It really depends on your income, spending habits, and financial goals. But here are some general benchmarks to give you a better idea:
*This table is for general reference only. Credit limits vary by lender and are influenced by multiple factors, including credit history, income, and debt obligations. These ranges do not guarantee approval or specific limit amounts.
A good credit limit should:
- Give you wiggle room to keep your credit utilization low (under 30%, ideally under 10%) Psst... want to know how to keep your credit utilization low? Learn more>
- Cover big purchases or emergencies
- Help you earn more rewards
- Set you up for stronger financial products in the future
A good credit limit supports your lifestyle, but doesn’t encourage overspending. Think tool, not temptation.
QUICK TIP: Think of credit limits as a tool, not a license to spend more than you can afford. |
is a higher credit limit always better?
Not always. Higher limits come with serious perks—but they also require responsibility. Here are some pros and cons of higher credit limit:
pros of a higher limit:
cons of a higher limit:
Psst... A higher limit is only “good” if it fits your spending habits and financial goals.
how much of your credit limit should you use?
HERE'S A QUICK REFRESHER: Your credit utilization = (your current balance ÷ your credit limit) x 100 |
Your credit utilization ratio is key here. Ideally, try to keep it under 30%—but if you want to impress lenders, aim for under 10%. Let's say you have a credit card with a spending limit of $5, 000 or $10,000 or more - here's a quick look at how much you should spend if you want to stay under the 30% utilization ratio.
Staying below these thresholds shows lenders you’re in control of your finances. 💪
how to get a higher credit limit?
There are two main ways to raise your limit:
Wait for an automatic increase
Some lenders review accounts and bump up limits for cardholders who consistently pay on time and use their cards responsibly. This is all done without you having to ask.
Request a credit limit increase
If you want to be proactive, you can usually request a loan review for an increase through your online account or by calling your lender. Just be ready to:
- Share your income details
- Share your reason for requesting more credit
- Have a strong payment history Psst... Avoid asking if you’ve missed payments or are carrying a high balance
QUICK TIP: Some lenders may perform a hard inquiry on your credit, which can temporarily impact your score. If you want to know exactly how your credit score is impacted when a hard inquiry is done, check it out here> |
when should you ask for a credit limit increase?
Consider asking when:
- Your income has gone up
- You’ve paid off other debts
- Your credit score has improved
- You’ve had your card for at least 6–12 months
You might want to wait if:
-
You’ve missed recent payments
- Your utilization is high
- You’re experiencing financial instability
is upgrading your credit card worth it?
If your current card doesn’t match your financial progress anymore, upgrading might be the right move, especially if it comes with:
- Higher credit limits
- Better rewards
- Low or no annual fees
- Extra protections and perks
Skyla’s Visa Signature Credit Card offers all of that—plus credit limits up to $50,000, double points on every purchase, and a sleek, contactless design.
what happens if you go over your credit limit?
Some credit cards may allow you to spend slightly over your limit—but this often comes with fees or interest penalties.
Other cards may simply decline the transaction. Going over your limit can also negatively affect your credit score by spiking your utilization ratio.
QUICK TIP: If you're constantly going over your credit limit, it may make sense to request a credit limit increase with your lender. This can help eliminate some of the disasters, but make sure you're able to pay your balance and not go over your credit utilization. |
does skyla offer higher credit limit credit cards?
Yes—Skyla’s Visa Signature Credit Card is designed for cardholders who want more flexibility, better rewards, and a higher spending limit. In fact, eligible Skyla cardholders can upgrade to our Signature Card and receive:
-
A higher credit limit—up to $50,000
- 2x reward points on every purchase
- 2,500 bonus points when you upgrade
If you’re currently a Skyla credit cardholder and ready to level up your benefits, this upgrade could be a smart move.
Ready to unlock more spending power and rewards?
what’s next?
If your current credit limit feels like it’s holding you back—or you’re ready to earn more rewards and boost your score—it might be time to explore a limit increase or a card upgrade.
Not sure what your next step is? Take a look at your credit habits and long-term goals. Whether you’re ready to increase your limit or still weighing the pros and cons, the key is making sure your credit works for you.
ok so here's the fine print:
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Learning Credit Limits
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