“Good” can mean a lot of different things when it comes to credit cards. Today, we’re going to talk about credit limits. You know, the magical number that determines how much you can spend before your card gives you the cold shoulder. But what exactly is a good credit limit? Is it enough to cover a trip to Bora Bora or just a night out?.
Different people have different credit limits, but to keep your credit score healthy, it should be enough to cover your costs without going over 30% of your available credit. In other words, you want your credit limit to be almost four times the most you plan to spend on the card (before paying it off).
Having a high credit limit can seem appealing. To begin with, it lets you buy big things without using up all the money on your card. But is a 3,000-dollar credit limit really that much? Should you aim for that much? Let’s find out.
What is Considered a High Credit Limit?
In general, credit limits of $10,000 or more are considered high. However, the average credit limit in the U.S. is around $5,000. So compared to most people, a limit of $30,000 is very high.
Here’s a breakdown of different credit limit tiers
- $1,000 – $5,000: Average
- $5,000 – $10,000: Above average
- $10,000 – $20,000: High
- $20,000+: Very high
As you can see, a $30,000 credit limit falls solidly in the “very high” range Only a small percentage of cardholders have limits this size
What Does it Take to Get a $30,000 Limit?
Getting approved for a $30,000 credit limit is no easy feat. Issuers don’t hand out limits this big to just anyone. Here are some key requirements:
-
Excellent credit—To get this big of a limit, your credit score needs to be at least 750. Many issuers only approve customers with scores of 800+.
-
High income: Lenders want to see that you make enough money to handle a $30,000 limit. Expect to need at least a 6-figure salary.
-
Low utilization—Utilizing your cards to their fullest or carrying balances from month to month will hurt your chances. You need to demonstrate responsible credit use.
-
Long credit history – A short credit history usually leads to lower limits. Having 10+ years of established accounts will help your case.
-
Current customer – Getting a high limit is easier when increasing an existing card vs applying for a new one.
As you can see, a $30,000 credit limit is only attainable for people with exceptional credit and financial profiles. It’s not realistic for the average consumer.
How High Limits Affect Your Credit Scores
Contrary to popular belief, having a high credit limit doesn’t automatically improve your credit. Here are a few things to keep in mind:
-
Utilization is what matters. If your limit is $30,000 but you maintain a $20,000 balance, that’s a high 67% utilization and will hurt your score.
-
Too many inquiries from applying can lower your score. Each application causes a hard inquiry.
-
Closing unused cards decreases your total limit and increases utilization.
-
Missed payments negatively impact your score regardless of limit size.
The bottom line: High limits only help your credit if you keep balances low and continue making on-time payments.
Pros of a $30,000 Credit Limit
While a high credit limit has some risks, it also comes with advantages:
-
Makes large purchases easier – With a $30,000 limit you can comfortably afford big transactions like vacations or furniture.
-
Provides emergency flexibility – Having reserve credit can be useful if unexpected expenses come up.
-
Allows you to keep utilization low – Even with high spending, you can more easily maintain a low utilization.
-
May qualify for premium cards – Cards with lucrative rewards often require high limits.
-
Can help improve your credit – If used wisely, high limits let you keep utilization under 10% or less.
Cons of a $30,000 Credit Limit
On the flip side, some potential drawbacks include:
-
Higher risk if stolen – Fraudsters can do more damage with a high limit card. Monitor statements closely.
-
Harder to get out of debt – Large limits enable taking on debt faster than paying it off. Practice restraint.
-
Higher minimum payments – If you carry a balance, your minimums will be higher with a giant limit.
-
Decreases chances of a limit increase – Once you hit a very high cap, further increases are unlikely.
-
Requires excellent credit – Most people won’t qualify for such a big line of credit.
-
Can trigger financial reviews – Some issuers monitor customers with excessively high limits.
Tips for Managing a High Limit Responsibly
If you’re fortunate enough to obtain a $30,000 credit line, here are some tips for using it wisely:
-
Track spending diligently – Monitor statement balances to avoid unauthorized charges.
-
Pay in full each month – Set up autopay if needed to avoid interest and maintain good credit.
-
Split big purchases into multiple cards – This keeps your main limit available for emergencies.
-
Consider lowering your limit – You can contact the issuer and request a reduction if it’s too tempting.
-
Use sparingly – Don’t go on a spending spree just because you can. Stick to your budget.
-
Review benefits – Take advantage of perks like purchase protection, lounge access, etc.
The Bottom Line
A credit limit of $30,000 is considered very high compared to most cardholders. Only those with pristine credit tend to qualify for limits this large. While a big line of credit can be useful, it also comes with risks if mismanaged. Maintain good financial habits and use your credit strategically. A high limit is a nice perk, but it isn’t necessary for everyone.
How to increase your credit limit
Want to bump up that credit limit? Here are some tried-and-true methods that might help:
Pay your bills on time consistently: Demonstrating a history of timely payments shows lenders that you’re reliable and financially responsible. This consistent behavior builds trust with your credit card issuer, which will likely approve a higher limit.
Use your credit card often. If you use your credit card often, it shows that you’re an active customer, which can make issuers more likely to raise your limit. It’s crucial to strike a balance and not overspend, as this could raise red flags.
Keep your credit utilization low: Maintaining a low credit utilization rate — ideally below 30% of your available credit — signals to lenders that you manage your credit well. This metric is a significant factor in determining your credit score and can influence your eligibility for a limit increase.
Tell your credit card company about your new income. If your income goes up, you may be able to ask for a higher credit limit. By updating your issuer with your latest income details, you provide justification for additional credit.
Wait several months between credit limit increase requests: A waiting period of several months shows that you’re not overly reliant on credit and can manage your finances responsibly.
Think about asking for a higher credit limit. Asking for it directly is sometimes the easiest way to get one. Contact your issuer and be prepared to explain why you believe a higher limit is warranted, whether due to increased expenses or improved financial standing.
Build a long-term relationship with your credit card issuer: Loyalty to a single issuer can work in your favor. A long-term relationship, especially if marked by responsible credit usage, can lead to trust and, consequently, a higher credit limit.
Maintain a good credit score: Your credit score reflects your creditworthiness. The higher your score, the more likely you are to be approved for a credit limit increase. Good credit practices, like paying off balances and avoiding late payments, can help you achieve and maintain a high score.
MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit — such as credit monitoring, credit report disputes, and getting credit by paying bills. A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards.
How much credit should I use?
Aim to use less than 30% of your available credit to maintain a healthy credit score.
Is $30,000 Amex Credit Card Limit TOO MUCH? Why American Express gave 25 y.o. “ridiculous” limit!
FAQ
Is a credit limit of $30,000 good?
Experian says that a credit limit of around $30,000 is good because it’s close to the average credit card limit across the country.
What is considered a high credit limit?
A credit limit of $5,000 or more is generally considered a high credit limit. However, what’s considered high can also vary based on individual circumstances, such as income and credit history.
What is the credit card limit for $30,000?
Find out how much you can spend on credit cards with a monthly salary of ₹30,000. The minimum and maximum amounts depend on a number of factors. However, the minimum credit card limit in India is 2 times your monthly income and the maximum can be 3 times. This comes to a credit limit between ₹60,000 and ₹90,000.
What credit limit can I get with a 750 credit score?
A credit score of 750 typically allows for a credit limit between $5,000 and $10,000 or more, depending on other factors.