The average credit limit is about $28,431 per cardholder across all credit cards, according to August 2026 data from credit reporting bureau TransUnion. In Q1 2026, the average credit limit on a newly opened account was roughly $6,427, up from $5,923 in Q1 2025.
According to the agency's Credit Industry Snapshot, a record 20.6 million new credit card accounts were opened in the first quarter of 2026, a year-over-year in increase of 11.8%.
The Snapshot report also indicated that the average credit card balance per borrower increased slightly, from $6,473 in Q2 2025 to $6,610 in Q2 2026.
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What is a credit limit?
A credit limit is the maximum amount of money a cardholder can charge to a specific credit card. When setting an individual credit limit, issuers may consider factors such as credit history, income, existing debt and payment history. In general, stronger credit and sufficient income can improve your chances of qualifying for a higher limit.
After your account is opened, your limit may be increased if you prove you're managing your account well by paying your bill on time.
A cash advance limit is the maximum amount of cash you can borrow from your account, either by using your card at an ATM or bank or by using a convenience check provided by your card issuer. It's typically a portion of your overall credit limit, usually around 20% to 40%. If your total credit limit is $5,000, for example, your cash advance limit might be $1,000.
Taking out cash reduces both your available cash advance limit and your total available credit.
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How to increase your credit limit
Many credit card companies regularly consider cardholder accounts for automatic credit limit increases. They may perform an unannounced soft credit inquiry, which won't hurt your score, and then notify you about the increase.
To be a good candidate for an increase, you should:
- Consistently make on-time bill payments.
- Keep your balance below your current limit. A credit utilization rate of 30% or less is preferred, and under 10% is ideal.
- Update your account if your income increases.
- Strengthen your credit score by limiting new credit applications, keeping old accounts open and checking your credit reports for errors or fraud.
You can also request an increase directly through your card's mobile app, website or customer service line. Credit card companies generally prefer cardholders to wait six months after opening an account or after their last increase before requesting an increase.
When you reach out, be prepared to answer some questions about your employment status, income, housing costs and outstanding debts.
If you have a secured credit card, paying your bill on time is the best way to be considered for an increase. With the Capital One Platinum Secured Credit Card, for example, you may be considered for a credit line increase in as little as six months.
The Capital One Platinum Secured Credit Card can help you build, or rebuild, your credit because you can be approved with no credit or bad credit.
- No annual fee
- Low minimum refundable security deposit starting at $49 to get a $200 initial credit line
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- No welcome offer
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Highlights
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- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get at least a $200 initial credit line
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What happens if you go over your credit limit?
If you go over your credit limit, your card may be declined at the point of sale. Being declined won't affect your credit score, but being at your spending limit likely means your credit utilization rate is high, which can hurt your score.
Some issuers will allow cardholders to opt in to over-the-limit coverage, which allows you to be approved for transactions that exceed your spending limit. If you do opt in, your card company may charge an over-the-limit fee, typically up to $25 the first time and up to $35 if you exceed your limit again within six months.
The fee can’t be more than the amount you went over your limit, though.
FAQs
How do credit card companies determine your credit limit?
Each card issuer has its own formula for determining credit limits, but typically, they will look at an applicant's credit score, debt-to-income ratio, income and employment status. Your credit report will tell them whether you've been paying your bills on time, how much credit other card companies have extended you and how much of it you're already using.
How often can you request a credit limit increase?
There's no set number of times you can request an increase to your credit limit, but many card issuers want you to wait six months after your card has been issued or your last increase. That gives them sufficient time to look at your payment history and spending record.
How does a higher credit limit affect your credit score?
If you don't increase your spending, a higher credit limit can lower your credit utilization rate, which may help improve your credit score over time. But if you start charging more and carry a higher balance, your utilization rate could rise and potentially lower your score.
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