Having a higher credit limit on your credit card can be beneficial in many ways But is a $10,000 limit considered good? Let’s take a closer look
What Factors Determine Your Credit Limit?
When a credit card company sets your limit they consider several factors
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Your credit score tells them how careful you’ve been with credit in the past. A higher score indicates lower risk.
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Your income: Lenders want to know that you make enough money to pay back the loan. Higher income means you can qualify for more credit.
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Your current debts—Lenders won’t give you more credit if you already have too much debt compared to your income. They don’t want to overextend you.
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How well you know the lender—Applicants whose accounts are in good standing may be able to get higher limits.
So in general, you need excellent credit, high income, and low debt-to-income ratio to get the highest credit limits.
What Is the Average Credit Limit?
According to Experian data, the average credit limit across open credit card accounts is about $13,000. But that includes everyone from those just starting to build credit all the way up to high net worth cardholders.
When you look at it by credit score range, the numbers are more useful:
- 300-579 (Poor): $3,42
- 580-669 (Fair): $5,521
- 670-739 (Good): $7,538
- 740-799 (Very Good): $11,972
- 800-850 (Excellent): $25,241
So while the overall average is around $13,000, most people need to be in the very good to excellent range to reach that level of credit.
Is $10,000 a Good Credit Limit?
Given the averages, a credit limit of $10,000 is definitely considered good. It’s well above what most people with fair credit can expect. But it’s also not an extremely high limit compared to those with excellent scores.
Here are some pros of having a $10,000 credit limit:
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Higher total credit available – This raises your total credit utilization ratio and helps your credit scores.
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Lower utilization on that card – You can keep utilization very low on that individual card, ideal for credit building.
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Higher spending power – You can make large purchases with that one card.
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Room to grow – You can likely get increases over time and graduate to premium cards.
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Reflects good credit – Lenders only approve limits this high for applicants with good/excellent credit.
The cons are very minimal. As long as you only spend what you can afford to pay off each month, there’s no real downside.
One potential con is going overboard on spending just because you have a higher limit. But as long as you use the card responsibly, this isn’t an issue.
Who Offers $10,000+ Credit Limits?
Most major issuers will offer limits of $10,000 or more, but you typically need great credit. Some common cards with high limits include:
- Chase Sapphire Reserve – Minimum $10,000 limit
- Citi Prestige® Card – Minimum $10,000 limit
- U.S. Bank Altitude Reserve Visa Infinite® Card – Up to $20,000 limit
- Citi® / AAdvantage® Executive World Elite Mastercard® – Minimum $10,000 limit
- The Platinum Card® from American Express – No preset limit
Store credit cards like the Amazon Prime Rewards Visa Signature also often offer limits above $10,000 for very well qualified applicants.
Secured cards generally max out at $5,000 or less since the limit is tied to a security deposit. But secured cards are less commonly used to establish higher limits from the start.
How Can I Get a $10,000 Limit?
If your credit cards currently have limits under $10,000, here are some tips to potentially get an increase:
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Ask for a higher limit – After 6+ months, request an increase on cards you pay on time.
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Have your income ready – Lenders may ask for proof of income to approve a higher limit.
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Apply for a new card – Open a new account and request a $10,000 limit during the application.
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Build your credit – Give it time and continue practicing good credit habits. Your scores and limits will rise.
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Watch your utilization – Keep balances low compared to limits, as this also helps increase limits.
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Provide collateral – With a secured card, your deposit becomes the credit limit.
The Bottom Line
A credit card limit of $10,000 is considered good for most consumers. It provides enough spending power for convenience while allowing room for responsible use.
Just make sure that you handle a card with a limit that high properly. Don’t spend beyond your means, and pay the balance off each month. As long as you use the card wisely, a $10,000 limit can be a great credit line to have available.
How do credit limits work?
Generally, a credit limit is the maximum amount of money a borrower or cardholder can charge on a revolving credit account. A credit card is maxed out when its limit is met or exceeded. Credit limits are often associated with credit cards, but they can also apply to other lines of credit.
Lenders typically determine credit limits after a person has applied for a credit card. Like the decision to approve or decline an application, credit limits are often based on creditworthiness, which is determined by reviewing credit reports and credit history.
Credit limits donât stay the same forever. You may be able to request a credit limit increase. In some cases, lenders proactively adjust credit limits. That could mean an increase or a decrease, depending on the circumstances.
What happens if you go over your credit limit?
Going over your credit limit may result in declined transactions, fees or higher interest rates. Nevertheless, lenders can only charge over-the-limit fees if you participate in their over-limit coverage program. However, they may approve or decline transactions that exceed your credit limitâregardless of your enrollment status.
So, even if you are not enrolled, an over-the-limit charge may still be approvedâbut the lender cannot impose an over-the-limit fee. If you have opted into an over-the-limit coverage program, lenders can charge one fee per billing cycle and no more than three fees for the same transaction.
Contact your credit card company if youâre unsure of your program enrollment.
Capital One cardholders are never charged over-the-limit fees. View important rates and disclosures. Eligible cardholders may be able to exceed their credit limits, and if your account has access, you can use the Confirm Purchasing Power tool to check whether an over-limit purchase may be approved. You can also disable the ability to spend over your credit limit in your over-limit preferences.
These 5 Credit Cards GUARANTEE A $10,000 Limit
FAQ
Is a 10,000 credit card limit good?
There are a few things that determine whether or not a $10,000 credit limit is good: Credit Score: If you have a good to excellent credit score (usually 700 or more), a $10,000 limit is very good. Income Level: Your income and overall financial situation also play a role.
What is considered a high credit card limit?
A credit card limit of $10,000 or more is generally considered a high limit. While the specific definition can vary based on an individual’s credit history and income, high-limit cards often offer rewards and benefits tied to significant spending.
How much should I spend if my credit limit is $10000?
With a $10,000 credit limit, it’s generally recommended to spend no more than $3,000 at any given time, or a maximum of 30% of your credit limit.
What credit card has a $10 000 limit?
The best credit card with a $10,000 limit is the First Tech Choice Rewards World Mastercard® card because it offers a minimum credit limit of $10,000 along with elite travel rewards and benefits. First Tech Choice Rewards is a particularly good option for big spenders with good credit.