A credit limit is the maximum amount that can be charged on a revolving account. But how is that limit decided, and what can you do to increase it? Read on to find out.
Credit card limits depend on a bank or issuer’s policies and other factors, including an individual’s credit scores. In general, people with higher credit scores will qualify for higher credit limits. Those with lower credit scores will qualify for lower credit limits.
Some banks or card issuers allow you to spend more than the credit limit. However, you may be charged an over-the-limit fee, so make sure you’ve checked your card’s terms and conditions before you even consider going over your limit. Usually, it’s not a good idea.