If you've never had a credit card before, you're probably wondering what your credit limit will be once you get approved for your first one.
Your credit limit is an important factor with any new card. It represents the maximum amount of credit available to you. When you are approved for a credit card, lenders determine your credit limit based on the information in your application and credit report. But some types of credit cards are known to have lower credit limits than others.
Below, Select outlines the average credit limit you can expect on your first credit card and how you can eventually increase this limit.
Average credit limits
Data from credit bureau Equifax's "Credit Trends" report shows that the average credit limit for new "bank card originations" (brand new account openings) has been between $5,000 to $6,000 during 2018 and 2019.
"However, many consumers new to credit start with a private label retail credit card, such as a retail store credit card," an Equifax spokesperson tells Select. "Those beginning limits have averaged between $2,000 to $2,500 during this same time period."
Because many consumers apply for store cards as their first credit card, your first credit limit is generally going to be on the low end. Though Equifax notes these retail cards averaging between $2,000 to $2,500, credit limits can be much less than that — in some cases below $1,000.
"Limits on those cards are notoriously low," financial expert John Ulzheimer, formerly of FICO and Equifax, tells Select. "And if your first card is a secured card then the limit will likely be very low as well."
Secured credit cards are typically marketed toward people with very little credit history because they require you to make a security deposit upfront (typically around $200) that acts as your credit limit. This means your limit won't be that high, but they are a great way to start building credit. Some of the best secured cards include the Capital One Platinum Secured Credit Card for a low deposit requirement and the Citi® Secured Mastercard® for low interest from a major bank.
How to increase the limit on your first credit card
Bottom line
Credit limits vary and are set by lenders based on a handful of factors, such as your capacity to pay your debts, your salary, your credit score and your credit risk. The good news is that once you start building credit, you will have a better chance of getting a larger line of credit.
If you already have a good mix of credit products, such as a mortgage or loans in your name, you will also have a greater likelihood of receiving a higher credit limit on your first credit card versus someone completely new to credit.
Information about the Citi® Secured Mastercard® has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
FAQs
Joyce Brown, WalletHub Credit Card Analyst
The usual credit limit for a first credit card is $100 to $500, on average, depending on which card you get. The credit limit could be as low as $100 for store credit cards or up to $500 if your first credit card is issued by a bank or credit union.
What is an average credit limit on a credit card? ›
The average credit limit on credit cards in the U.S. was $29,855 as of the end of the third quarter (Q3) of 2023. That's a 6.8% increase from Q3 2022, when the average credit limit was $27,955.
What is the starting limit for credit one credit cards? ›
All Credit One cards start off with a credit limit of $300 to $500. You can be considered for a credit limit increase with a history of consistent on-time payments.
What is the average credit score when you first get a credit card? ›
Most people's initial credit scores are between 500 and 700 points, depending on the steps taken when establishing credit. However, you won't have a credit score to report if you've never opened a credit account. Read on to learn more about your starting credit score and how to build your credit over time.
How much do you get approved for first credit card? ›
If you have good credit — a FICO score of 670 or higher — you'll likely be approved for a higher credit limit than you would with fair credit. That said, limits on these cards can still range from $500 to $1,000 for first-time cardholders, though you should be able to qualify for larger limits over time.
What is the starting limit for Best Buy credit card? ›
The Best Buy® Credit Card may give high credit limits to people with good-to-excellent credit, a lot of income, and relatively little debt. The minimum credit limit is $500, and some cardholders report having limits as high as $15,000.
What credit limit can I get with a 700 credit score? ›
What credit score is needed to get a high-limit credit card?
| VantageScore 3.0 credit score range | Average credit card limit |
|---|
| 300–640 | $3,481.02 |
| 640–700 | $4,735.10 |
| 700–750 | $5,968.01 |
| 750+ | $8,954.33 |
Mar 15, 2024
Instead of starting from the bottom, you'll actually start with no credit score instead — and that's not as bad as you might think. Implementing the behaviors to establish good credit is essential to what credit score you start with, but that's after meeting the criteria to get past the no credit history phase.
What is a good credit limit to set? ›
How to figure out a good credit limit for you. As long as you aren't regularly using more than 30% of your credit limit, you can consider it to be a good limit. A simple rule of thumb to decide if you have a good credit limit is to consider how much you regularly spend between payments.
What's the highest credit limit on Capital One? ›
Capital One Venture Rewards Credit Card
Highest reported credit limit: $58,000, according to a member on the myFICO forums. Sign-up bonus: Earn 75,000 bonus miles when you spend $4,000 on purchases in the first three months from account opening. Rewards: Earn 2 miles per dollar on every purchase.
What is the Capital One Quicksilver credit limit? The Capital One Quicksilver credit limit depends on your income, creditworthiness and payment history, which are evaluated once you apply for the card. According to anecdotal reports, the card's credit limit can be as low as $750 and as high as $10,000.
What is the credit limit for Credit One up to $2 000? ›
Credit One Platinum's maximum credit limit is around $2,000, according to customer reviews. Some people report being approved for this amount right away, while others have worked up to it over years of responsible card use. The minimum credit limit for Credit One Platinum is just $300.
How long does it take to build credit from 500 to 700? ›
How Long Does It Take to Fix Credit? The good news is that when your score is low, each positive change you make is likely to have a significant impact. For instance, going from a poor credit score of around 500 to a fair credit score (in the 580-669 range) takes around 12 to 18 months of responsible credit use.
Is a 900 credit score possible? ›
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
What is my credit score if I have never borrowed money? ›
If you have no (or little) previous borrowing history, and no track record on which to determine credit-worthiness, CIBIL will assign you scores of 0 or -1 respectively: CIBIL score 0 means that information about the borrower's credit history is available for only up to a period of less than 6 months in total.
What is a good credit limit for a 22 year old? ›
Average American credit limit by credit score and age group
| Generation | Average Overall Credit Limit Per Person | Average FICO Score |
|---|
| Generation Z (18-22) | $8,062 | 667 |
| Millennials (23-38) | $20,647 | 668 |
| Generation X (39-54) | $33,357 | 688 |
| Baby Boomers (55-73) | $39,919 | 731 |
1 more rowDec 22, 2022
In general, credit limits tend to run around $2,000 to $10,000 per card — although many credit cards for people with bad credit offer lower credit limits in exchange for the opportunity to rebuild your credit score.
Is a $3000 credit limit good? ›
a $3,000 credit limit is good if you have fair, limited or bad credit, as cards in those categories have low minimum limits.
What credit card has $5000 limit with bad credit? ›
The U.S. Bank Altitude Go Visa Secured Card is the best option if you have limited/poor credit and are looking for a high credit limit. You can deposit anywhere from $300 to $5,000, making your maximum credit limit available $5,000.
