Can you choose the limit of a credit card yourself?
A credit card is useful if you occasionally want to spend some extras. When renting a car or hotel, a credit card is often indispensable. But how much spending space do you actually need? And can you choose the limit of your credit card yourself? Good Finance figured it out.
How high the limit of your credit card should be depends on the purpose for which you want to use the card.
If you only take a credit card for car rental, it may be wise to choose a card whose limit is no higher than necessary. A thousand USD can be enough. You will therefore not be tempted to make larger purchases with it.
Do you also want to use the credit card to make online purchases and to have extra scope on vacation? Then a higher limit is more practical. You do not run into the limits of your spending space that easily.
Which limits can I choose?
Most credit cards have a standard spending limit that matches the type of card. Cheap credit cards for students, for example, often have a spending limit of 500 USD. Depending on the income, it can also be 1,000 USD or higher.
Regular credit cards such as the MasterCard Classic or the Visa World Card have a standard spending limit of 2,500 USD. More expensive, more luxurious credit cards with an addition such as Gold and Platinum or Black have higher spending limits of, for example, 5,000, 10,000 and even 25,000 USD.
American Express credit cards do not have a standard spending limit. The spending limit is adjusted to your income and your payment behavior. In the app you can always see how high that limit is.
How can my limit increase?
You don’t necessarily have to choose a more expensive card for a higher limit. With the vast majority of credit cards you can choose from different limits. This is often possible in the app or via the internet.
Of course, the issuer of the credit card must keep a finger on the pulse of whether you are able to repay the amount. This can also include a BKR test. That is why it sometimes takes a few days to weeks before the higher limit starts. And if the result of the BKR test is negative, it could also be that the higher limit is canceled or that your spending limit is even limited.
At ICS, publisher of Mastercard and Visa, you can ask for a higher limit immediately upon receipt. ICS needs information about your financial situation for this. The same applies to bank credit cards and to Knab’s Visa credit card, issued by Qander, for example.
With American Express, the limit automatically adjusts when you use the card. If you always pay the bill on time, you will soon be eligible for a higher limit. However, you can also ask for a higher limit if you need it. For this you must contact the member service.
Can I also transfer money?
Do you want to be able to spend more with your credit card than the limit, for example to make online purchases or to pay at holiday hotels? Then it is not always necessary to increase the spending limit.
With practically all cards you can also transfer money to the card yourself. This also increases your spending space.
Can I also lower my limit?
Credit cards always have a minimum spending limit. That can be 500, 1,000 or 2,500 USD. If you have increased the spending limit and want to lower it again, you can. But with a card with a standard limit of 2500 USD, you cannot return to, for example, 1,000 USD.
Does a prepaid card also have a limit?
Would you rather not have a credit option? Then you can also opt for a prepaid card.
The spending space of a prepaid card is just as large as the amount that you put on it yourself. Sometimes the maximum amount you can have on the card is bound by a maximum, for example 5,000 Dollar.
Sometimes there are also limits for what you can spend per day or how much you can get per day or per month at an ATM. You can also sometimes set a spending limit yourself.