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What's a good credit limit?

A good credit limit is above $30,000, as that is the average credit card limit, according to Experian. To get a credit limit this high, you typically need an excellent credit score, a high income and little to no existing debt. What qualifies as a good credit limit differs from person to person, though.

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A good credit limit is above $30,000, as that is the average credit card limit, according to Experian. To get a credit limit this high, you typically need an excellent credit score, a high income and little to no existing debt. What qualifies as a good credit limit differs from person to person, though. For someone with no credit, for example, a $500 credit limit is good because most beginner credit cards start off with lower limits. But for very experienced borrowers with a lot of disposable income, a good limit is much higher. Good Credit Limits by Age Group Age Group Good Credit Limit Gen Z (18-24) $9,000 Millennials (24-39) $22,000 Gen X (40-55) $34,000 Baby Boomers (56-74) $39,000 Silent Generation (75+) $32,000 Note: A good credit limit is slightly higher than the average for each age range, based on 2020 Experian data. Remember, it’s best for your credit score to use 1% to 10% of your credit limit each month, and no more than 30%.

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Report Abuse Do you mean on a single card? Or combined limit? Reply 08/07/22

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People also ask Is a 3000 credit limit good? What is the average credit card limit for a 25 year old? 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. Of course, a credit score is not the only factor issuers take into account when determining credit limits. Income and debt play important roles as well, so every amount you may find on the internet should be taken with a grain of salt.… read full answer show less Is it good to have a high credit limit? It's good to have a higher credit limit if you need to reduce your credit utilization ratio, want to have a safety net in case of financial emergencies or if you want to earn more rewards. The credit utilization ratio shows how much of your available credit is actually used. A ratio higher than 30% can hurt your credit score.… read full answer The major downfall of having a higher credit limit is that you could spend more, thus increasing your debt and eventually hurting your credit score anyway. If you can't trust yourself to keep your spending in check, don't go for an increase! Also keep in mind, that most of the time, a credit limit increase comes with a hard pull on your credit, lowering your score for a short period of time. show less WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.

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