Is a 12,000 Credit Limit Good? (2024)

FAQs

Is a 12,000 Credit Limit Good? ›

A $12,000 credit limit is good if you have fair to good credit, as it is well above the lowest limits on the market but still far below the highest. The average credit card limit overall is around $13,000.

Yes, $12,000 is a high credit card limit. Generally, a high credit card limit is considered to be $5,000 or more, and you will likely need good or excellent credit, along with a solid income, to get a limit of $12,000 or higher.

If you're just starting out, a good credit limit for your first card might be around $1,000. If you have built up a solid credit history, a steady income and a good credit score, your credit limit may increase to $5,000 or $10,000 or more — plenty of credit to ensure you can purchase big ticket items.

You will typically need a high income and little to no existing debt to get a limit that high, too. But even if your credit score is at the low end, there still is a possibility to get a $10,000 limit.

Yes, a $20,000 credit limit is good, as it is above the national average. The average credit card limit overall is around $13,000, and people who have higher limits than that typically have good to excellent credit, a high income and little to no existing debt.

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.

In this case, we can multiply $12,000 x 0.30 = $3,600. You would ideally spend less than $3,600 across all your credit products—the two credit cards and the line of credit.

On an individual level, the overall average balance is around $6,501, per Experian's data. Other generations' credit card debt falls closer to that average or below. Here's the average amount of credit card debt Americans hold by age as of the third quarter of 2023, according to Experian.

In 2022, Generation Z (ages 18-25) averaged a total credit limit of $11,290 across all credit accounts, far lowest among the five generations presented. Baby Boomers top the list with a $40,318 total credit limit on average.

How can I raise my credit score 100 points overnight? ›

To get a $10,000 credit limit on a Capital One credit card, you will need to apply for a high-end card like Capital One Venture X and meet the income requirements. Other Capital One cards may offer $10,000 starting credit limits to qualified applicants, but the odds of getting a limit that high are not as good.

A good rule of thumb is to keep your credit utilization under 30 percent. This means that if you have $10,000 in available credit, you don't ever want your balances to go over $3,000. If your balance exceeds the 30 percent ratio, try to pay it off as soon as possible; otherwise, your credit score may suffer.

While it's broadly true that higher income enables higher credit limits, there is no formula for determining credit limit based on income alone.

Any credit limit of five figures or more is broadly accepted as a high credit limit. Unfortunately, credit card issuers rarely publish their credit limit ranges. In most cases, you won't know what credit limit you'll get until you apply and get approved.

The highest credit limit one can obtain depends on multiple factors, including income, credit history, and the credit card issuer's policies. While some individuals may qualify for credit limits exceeding $20,000, it often requires an excellent credit score and substantial income.

One of the best ways to improve your credit score is to lower your credit utilization ratio. A good rule of thumb is to keep your credit utilization under 30 percent. This means that if you have $10,000 in available credit, you don't ever want your balances to go over $3,000.

Aim to use no more than 30% your total available credit. You can calculate your credit utilization ratio on a per-card or overall basis. We have a calculator below that can help. Credit utilization is one of the most important factors used to calculate your credit score.

This 1200 credit limit is an arbitrary figure chosen to allow customers to compare different credit cards. This assumed credit limit is not the actual credit card limit that a customer is likely to get. A new card customer could apply for a 3000 credit card, and be given a credit card with a £5000 limit, for example.

Chip Lupo, Credit Card Writer

A $1,000 credit card limit is good if you have fair, limited or bad credit, as cards in those categories have low minimum limits.