Can my credit limit change?
Your credit limit can increase or decrease from when you first get your card. This can happen either at your request, or because the bank needs to make a change due to a change in circ*mstances. Here are some of the possibilities.
What if my credit limit is decreased
Occasionally we may have to reduce your credit limit. This usually happens because of how you’re using your Barclaycard or credit from other lenders, and from information we’re sent from Credit Reference Agencies about your credit history. Reasons can include:
- multiple missed payments
- going over your credit limit
- making low repayments to pay off your balance
- making a high number of cash-like transactions
- applying for multiple new types of credit in a short space of time
- being made bankrupt or having a history of County Court Judgements (CCJs)
We’ll think about it carefully before we decide to reduce your limit. We’ll look at how you’ve used your card in the past – and how you’re using it now. We’ll look at other types of credit you’ve got too.And if we do decide to lower your limit, we’ll send you a letter to let you know – your new limit will take effect three days after the date on this letter.
It’s not an easy decision, but we want to make sure you don’t get into more debt than you can manage. A lower credit limit can help you to stay on top of your finances in the long-term. It can even help you build up your credit rating again over time.
Of course, you can also reapply for a credit limit increase – but you should wait several months. You may want to use this time to improve your credit score. This will significantly improve your chance of being approved for your next increase. Here are some tips for how to raise your credit score even further.
Get in touch if you’d like to speak to us about reducing your credit limit.
Changing your credit limit
You can ask for an increase or decrease in your credit limit online. Just tell us what you'd like your credit limit to be and we'll see what we can do for you. If we decide we can change it, we’ll update it. If we can’t change it, we’ll let you know – usually within 24 hours.
You can also ask us to increase or decrease your credit limit in Barclaycard online servicing.
What you need to know before you ask us to change your limit
Things you need to know before you make a request
- If you're already a customer, you can request a decrease in your limit whenever you want, as long as your new limit isn’t below the balance still outstanding on your account, plus a level of future spending
- We can only increase your credit limit if it's been at least four months since your last credit limit increase or at least six months since a credit limit decrease. Make sure you ask for a manageable amount you think you'll need so you don't have to wait to ask again
- We make decisions on credit limit increases based on information we already hold on you from credit reference agencies and how you’ve used your Barclaycard in the past. Your credit file won’t be searched unless you give us approval to do so
- If we can’t offer you the full amount of any credit limit increase you ask for, we could still offer a smaller increase. This will be the highest we can offer you
- If you’re not eligible for a new credit limit but your situation changes, we’re happy to look at a new request if at least one month has passed since your request. If you are eligible for a credit limit increase, you need to wait until at least four months have passed before requesting another increase
Once you’re happy, use the quick guide below to request your credit limit change.
Quick guide
- Step one–log in to your account and select ‘Manage account’ in the top menu
- Step two–select ‘Change your credit limit’ and tell us the new limit you’d like, then enter your employment and income details
- Step three–submit your request – we’ll usually give you an instant decision.
Log in to change your credit limit
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Why has my credit limit increase request been declined?
We make decisions on credit limit increases based on information we already hold on you from credit reference agencies and how you’ve used your Barclaycard in the past. As a responsible lender, we may have to decline your request for a credit limit increase to make sure you don’t get into more debt than you can manage. There are a number of reasons why we might decline your request – here are some of the most common ones:
Your credit score
Your credit score is how lenders assess your suitability for many different products and services. A poor credit rating could be the reason we decline your request to increase your credit limit. Find out the common causes of bad credit, and how to improve your credit score.
Stuck in a state of credit rating confusion?
You can also try our handy Credit Builder tool to better understand what impacts your credit rating. We’ll even give you personalised tips to help improve your rating.
Give it a go
A recent credit limit increase or decrease
Lenders need to see a history of responsible borrowing and repayments before increasing your credit limit. If you’ve not had your new limit for very long, it’s harder for us to measure your creditworthiness. We can only increase your credit limit if it's been at least four months since your last credit limit increase or at least six months since a credit limit decrease.
You’re already at your maximum credit limit
Credit cards aren’t suitable for large amounts of borrowing as it can be expensive. Every credit card is different, but if you already have a high limit, it could be that you’ve reached the maximum for that particular product
You’ve only been making minimum payments each month
If you’ve only been making the minimum monthly payment (or close to the minimum) for a while, this could suggest that you can’t pay more. We don’t want you to get into more debt than you can handle. Paying a higher amount each month will save you money on interest, help you clear your balance quicker, and show us that you could potentially cope with a higher limit
Unemployment
Generally speaking, we wouldn’t increase your credit limit if you’re unemployed – there’s a risk that you won’t be able to keep up with repayments which can have a negative effect on your credit rating. If your income changes, get in touch with us so we can update your information
You’ve missed several payments
If you don’t make your minimum payment several months in a row, this will have a negative effect on your credit rating and will stay on your credit history for a long time. You can set up a direct debit to make at least the minimum payment each month, or change you payment due date to one that’s more convenient for you
Important things not to do
When it comes to credit limits, there are a few things you should avoid doing. Don’t try to increase your credit limit by spending beyond it. Going beyond your overdraft limit is likely to cost you in higher fees or penalties. It may also go on your credit history and harm your chance of being approved for a credit limit increase.
You should also try to avoid asking for a credit limit increase if you’re struggling to meet your expenses and repayment costs. It may seem like a tempting option, but can often lead to even deeper debt.
However, if you need to increase your credit limit for a single purchase, some banks will let you shift your lines of credit between different cards. For example, if you have a £2000 credit limit on one card and a £6,000 credit limit on a different one, you might ask for £1000 to be moved to the other card so you can make purchases without exceeding your credit limit. Not all banks will agree, but it’s worth calling. If you need help managing your spending and borrowing, just call and see if we can help.
If you’re looking for ways to manage debt, you’ll find some answers at Money worries? We can help for additional help.
FAQs
How do you explain credit limit? ›
A credit limit is the amount of credit a lender grants you on a credit card or other type of credit account. Lenders determine your credit limit by examining your credit history and financial information. You can typically only spend up to your credit limit until you repay some or all of your balance.
On what 3 things is your credit limit based? ›When deciding how large to make your credit limit—the maximum balance you can have on a credit card—card issuers consider your income along with several other factors, such as your credit scores, outstanding debts and how much of your available credit is in use.
What should my maximum credit limit be? ›| Age Group | Good Credit Limit |
|---|---|
| Millennials (24-39) | $28,000 |
| Gen X (40-55) | $39,000 |
| Baby Boomers (56-74) | $42,000 |
| Silent Generation (75+) | $33,000 |
A credit limit on a credit card is the maximum dollar amount a cardholder can access for purchases, balance transfers, cash advances, fees and interest charges combined.
How much should I use at $500 credit limit? ›$500 — When you have a credit limit of $500, ideally your balance is $150 or less. $1,000 —If your credit line is $1,000, this means you should aim for a balance of $300 or less to maintain your credit utilization.
What should I put as my credit limit? ›Generally speaking, it may be helpful to have a reasonably high credit limit, but using a relatively low percentage of it. This often looks best to lenders, as it shows you can borrow credit, but you're not heavily reliant on it.
Is $3000 a high credit limit? ›A $3,000 credit limit is good if you have fair, limited or bad credit, as cards in those categories have low minimum limits. The average credit card limit overall is around $13,000, but you typically need above-average credit, a high income and little to no existing debt to get a limit that high.
Is $25,000 a high credit limit? ›Yes, a $25,000 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.
How much should I spend if my credit limit is $1000? ›You should use less than 30% of a $1,000 credit card limit each month in order to avoid damage to your credit score. Having a balance of $300 or less when your monthly statement closes will show that you are responsible about keeping your credit utilization low.
What credit limit can I get with a 750 credit score? ›| 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 |
What credit limit can I get with an 800 credit score? ›
Despite those high balances, it's equally important to note that those with high credit scores also have high credit card limits. For those with 800-plus scores, their average credit card limits are $69,346. That's up from the $58,514 average we found in May 2021.
What happens if you go over your credit limit but pay it off? ›Going over your credit limit usually does not immediately impact your credit, particularly if you pay down your balance to keep the account in good standing. However, an account that remains over its limit for a period of time could be declared delinquent, and the issuer could close the account.
Does your credit limit reset every month? ›Does Your Credit Card Limit Reset Every Month? Every time you make a payment to your credit card account and that payment is credited to your account, it will reset your credit limit. So if you make a payment every month, then it will reset your credit limit monthly.
Does Capital One automatically increase credit limit? ›Receive an automatic credit limit increase
Capital One may automatically increase your credit limit if you use your credit card responsibly.
The Bank of America® Travel Rewards Secured Credit Card is the best credit card with a $5,000 limit for bad credit. You can get a $5,000 credit limit with the Bank of America Travel Secured Card by placing a refundable security deposit of $5,000. The card also offers 1.5 point per $1 spent and has a $0 annual fee.
What does $1000 credit limit mean? ›The credit limit is the total amount you can borrow, whereas available credit is the amount that is remaining for you to use, including if you carry a balance. For example, if you have a credit card with a $1,000 credit limit, and you charge $600, you have an additional $400 to spend.
What does $15000 minimum credit limit mean? ›A minimum credit limit is the lowest amount of credit you can get approved for on a particular credit card. In Australia, minimum credit card limits typically start from $500 to $15,000 for personal credit cards and can be higher for business credit cards.
How do you define credit card limit? ›Credit limit is the maximum amount granted by the credit card issuing bank that you can use on your credit card at any given time. Each credit card issuing bank has its own sets of minimum and maximum credit limits for different card types.
Do you want a higher or lower credit limit? ›A higher limit can help you score.
A higher card limit could increase your credit rating – the number that lenders use to determine your creditworthiness. This is because a higher cap (limit) reduces the amount of the total credit you are using, or your credit use ratio.