Your credit limit is the maximum amount you’re allowed to borrow on a credit card or line of credit. It may sound simple, but knowing how it works — and how to stay within it — can protect your credit score and your peace of mind.
✅ 5 Key Points About Credit Limits:
- It’s the cap on how much you can borrow — not how much you should.
- Using too much of it (over 30%) can lower your credit score.
- Paying on time and in full can increase your limit over time.
- Going over your limit may lead to fees, declined purchases, or account freezes.
- Your income, credit score, and repayment history affect how your limit is set.
👉 A smart borrower doesn’t just stay under the limit — they use credit like a tool, not a trap.