Credit cards can make purchasing things a lot easier, but they have some limits. There is a certain amount, which is called the credit limit, that can be charged to a credit card each month. Each bank may have a different baseline credit limit, and they also make different adjustments to the credit limits of specific customers. When anticipating the need to make major purchases with credit cards, people may be wondering about their credit limits. How can credit limits be checked?
Typically, a credit limit will be included on a credit card statement. It will likely be located at the top of the statement or somewhere else fairly obvious.
Call the Bank
If a credit card statement cannot be found or the credit limit is not included with it, a customer can call the number on the back of the card. This will connect to the customer service department. There may be an automated system that can provide the credit limit, or a service representative can provide that information.
A third way in which someone can figure out a credit limit is by logging online to access the credit card account. The website will show a detailed overview of the credit card information, including the credit limit.
Setting a Credit Limit
According to the professionals at SoFi, the “average credit limit for Americans was $30,365 in 2020.” This is a significant amount of money. However, individual credit limits can vary a lot, depending on a few different factors. These factors include age, credit score, income, history with the card issuer, and economic conditions. If someone is seen as a high risk, the credit limit could be under $1,000.
Having a higher credit limit can be advantageous, as it provides more flexibility. If people are planning vacations or want to make big purchases, then they might only be able to do so with higher credit limits. There may be ways in which these limits can be increased. To start, any increase in income should be reported to the bank, as this would definitely make a bank reconsider the limit.
In addition, behavior matters. Paying all bills on time can show banks that customers are good partners to have. This can raise a credit score pretty considerably over time. Even if full payment cannot be made by the deadline, making more than the minimum payment would be a smart idea, if possible. After months of only making minimum payments, this change in behavior would certainly be noticeable to card issuers.
Finally, it doesn’t hurt to ask a bank for an increase in credit. With some banks, this can be done online. If this isn’t an option, it can be done over the phone. This may trigger an inquiry, though, so it’s best to only take this option if truly necessary.
Credit limits are highly individualized, and they can change over time. It’s very easy to check a credit limit since it should be included on all monthly statements.