Credit cards with low limits make it easier to keep up with payments while allowing you the necessary credit for emergencies. We’ve reviewed the best low limit credit cards for students.
When it comes to credit cards, having a higher credit limit may not always be the best option. Some people may want flashy cards with high credit limits, but others may choose to keep their credit limit low so they can make their payments on time.
The lowest credit card limit generally starts at $200. Sometimes it’s better to get a credit card with a low limit because it can help you get money quickly in case of an emergency while keeping you from spending too much and getting into debt.
For secured credit cards, the applicant can decide their credit limit by making a security deposit equal to the amount of credit line they desire. However, most secured credit cards have a minimum security deposit requirement of $200. Student credit cards generally have a low limit as well, which is usually less than $1000. For most unsecured cards, the credit limit is based on the applicant’s credit score and how much money they make. The higher the score and the income, the better the limit would be. After approval, you can request a lower limit with your credit card issuer if needed.
If you want a credit card with a low initial credit limit, here are some of the best options available.
It’s an exciting moment when you get your first credit card approval. Don’t be upset if your credit limit is lower than you thought at first. Most lenders set their limits pretty low at first, especially for people who have little or no credit history.
The most your first card will let you borrow is $300 to $500. You can get a card with a limit as low as $200, though.
In this article, we’ll explain what determines your initial credit card limit and recommend the best low limit cards for building credit.
What Is a Credit Card Limit?
What is your credit limit? It’s the most you can charge your card each billing cycle. You can borrow up to the limit and pay it back over time, just like a revolving line of credit.
The higher your limit, the more purchasing power you have. But if you max out your card and carry high balances, that can damage your credit.
Credit card companies determine your limit based on your:
- Income
- Existing debts
- Credit score
- Credit history length
For most people, the limit on their first card falls between $200 and $1,000. But it varies case by case.
Let’s look at the factors that determine your starting limit in more detail.
What Affects Your Initial Credit Limit?
Income
Lenders want to make sure you earn enough income to make your minimum payments. If you have limited income, you may receive a lower limit to start.
Many credit card applications ask for your individual and household income. Providing this information helps maximize your initial limit.
Existing Debts
Banks will look at your debt-to-income ratio when determining your limit. This measures how much of your income already goes toward paying debts.
If you have high existing debts relative to your income, lenders may cap your initial limit to minimize their risk.
Credit Score
Your credit score tells lenders about the loans you’ve taken out and paid back in the past. Most of the time, your credit limit will go up as your score goes up.
Most people start building credit in the fair credit range (580-669). With scores in this range, expect initial limits around $300 to $500.
Credit History Length
If you’re applying for your first card, you likely have a “thin” credit file. Lenders prefer to see a longer history of managing credit responsibly.
With an unestablished credit history, banks will start you off with a relatively low limit. But responsible use can quickly lead to increases.
Now let’s look at some real-world data on average starting limits.
Average Initial Credit Limits
According to a 2022 WalletHub report, the average initial limit across all new credit card accounts is $1,358. However, this figure is skewed higher by applicants with established credit.
For your first card, here are more realistic expectations:
- Applicants with no prior credit history: $400
- Applicants aged 18-20: $450
- Applicants aged 21-24: $925
These numbers will vary based on your personal financial situation. But they provide a ballpark estimate of what to expect with your starter card.
Next let’s look at the lowest credit limits issuers will approve.
The Absolute Lowest Credit Card Limits
Every lender has their own minimum credit limit policies. But across all card issuers, here are the lowest limits we typically see:
- Non-secured cards: $200 to $300
- Secured cards: As low as $200 (based on your security deposit)
- Retail store cards: $100 to $300
Again, your personal situation determines where you fall within these ranges. Expect the low end if you have very limited income or credit history.
Now let’s look at some of the best low limit card options.
Best Low Limit Credit Cards
Here are some excellent starter cards offering lower credit limits for building credit:
Petal® 2 Visa® Credit Card
- Credit Required: No credit history OK
- Credit Limit: $300 to $1,000
- Highlights: No annual fee. Up to 1.5% cash back on purchases. Easy online application.
Capital One Platinum Secured Credit Card
- Credit Required: No credit history OK
- Credit Limit: $200 security deposit
- Highlights: No annual fee. Don’t need a credit check. Build credit with responsible use.
Discover it® Secured Credit Card
- Credit Required: No credit history OK
- Credit Limit: Minimum $200 deposit
- Highlights: Rewards program earns 2% cash back at gas stations and restaurants. Matched cash back after first year.
OpenSky® Secured Visa® Credit Card
- Credit Required: No credit check
- Credit Limit: Minimum $200 deposit
- Highlights: Easy approval odds. Great for rebuilding credit. Higher limits available with additional deposits.
Any of these cards make excellent options for consumers needing to establish a credit history. Their low minimum limits make approvals accessible. Responsible use can quickly demonstrate you deserve a higher limit.
How to Get a Higher Limit
The best way to increase your credit limit is to use your card responsibly:
- Make at least the minimum payment every month
- Pay off statement balances in full to avoid interest
- Keep credit utilization low (at or below 30% of your limit)
- Avoid late payments or going over your limit
Many issuers review your account periodically for credit limit increases. So you may see your limit rise automatically over time with responsible usage.
You can also request a higher limit after making payments on time for 3 to 6 months. This signals you can handle more available credit. Limit increase requests are typically made by phone or through your account website.
Finally, opening additional credit cards and improving your credit score can lead to higher limits. Just be sure not to open too many cards at once.
Closing Thoughts on Low Limit Credit Cards
A lower starting limit doesn’t mean you’re stuck there forever. Consistently demonstrate responsible credit management, and your limit should increase.
Low limit cards help start the credit building process for those with limited financial histories. Over time, your improved score and repayment track record will unlock higher limits and more card options.
Focus on using your first card properly, and the rest will follow. Your credit journey starts with that initial lower limit account.
What is the lowest credit card limit?
When you get your first credit card from a retail store, your credit limit may start at $100. However, if you get your first credit card from a bank or credit card company, you could be approved for a slightly higher credit limit of up to $500.
Discover It® Student Cash Back Credit Card
Discover It® Student Cash Back Credit Card
Why We Like It
The Discover It® Student Cash Back credit card is a great option for students 18 years and older as it offers great rewards and benefits, including a cashback program and no annual fees. Discover It® student cards come with a minimum credit limit of $500.
The card has a 0% APR for six months on purchases, after which a minimum APR of 17.99% applies, and a balance transfer intro APR of 10.99% for six months. When you graduate, you can update your income information and you may then become eligible for a higher credit limit.
Students can log in to the Discover mobile app to view their free FICO scores, track their cashback rewards, and get free Social Security Number security alerts.
You can earn a statement credit if you refer a friend and they get approved for a card. You’ll also get a welcome bonus that you don’t typically get with other student credit cards.
- No annual fee
- No foreign transaction fees
- Cash back rewards program
- No credit score needed to apply
- Lower rewards than other similar cards
- Not as widely accepted as Visa, Mastercard, or American Express
- Must be at least 18 years old
- Enrolled in college
- Be a U.S. citizen
- Have a Social Security Number
- Need to have verifiable income (part-time or full-time)
Cash Back
- 5% cash back on everyday purchases from Amazon as well as selected grocery stores, restaurants, and gas stations. Plus, 1% cash back on all other purchases
Welcome Offer
- You’ll get an unlimited cashback match, where Discover will automatically match all the cashback rewards you’ve earned at the end of the first year
THIS Credit Card Company Gives me the LOWEST Credit Card Limits
FAQ
What is the lowest credit card limit?
Most of the time, secured credit cards and student credit cards have the lowest credit limits, starting at around $200 to $300.
What is the minimum credit card limit?
In India, your credit card limit can be as low as two times your monthly income or as high as three times your monthly income.
Can I get a credit card with $1000 limit?
Yes, it’s possible to get a credit card with a $1,000 limit. Many credit card issuers offer cards with initial credit lines of $1,000, especially for those with less-than-perfect credit or those starting to build credit.
What is a minimum limit on a credit card?
People who don’t have much credit history or have relatively bad credit will be offered lower credit limits. The minimum credit limit is the lowest limit on that scale. Their credit limit must be at least $500 for them to offer any credit cards with a limit lower than $500.