So, you’ve got the basics of credit limits down—now you’re probably wondering: what actually qualifies as a good credit limit?
Let’s break it down:
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:
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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. |
Not always. Higher limits come with serious perks—but they also require responsibility. Here are some pros and cons of higher credit limit:
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Psst... A higher limit is only “good” if it fits your spending habits and financial goals.
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.
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Staying below these thresholds shows lenders you’re in control of your finances. 💪
There are two main ways to raise your limit:
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.
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:
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> |
Consider asking when:
You might want to wait if:
You’ve missed recent payments
If your current card doesn’t match your financial progress anymore, upgrading might be the right move, especially if it comes with:
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. |
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
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?
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.
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