A good credit limit is above $30,000, as that is the average credit card limit, according to Experian. To get a credit limit this high, you typically need an excellent credit score, a high income and little to no existing debt.
What qualifies as a good credit limit differs from person to person, though. For someone with no credit, for example, a $500 credit limit is good because most beginner credit cards start off with lower limits. But for very experienced borrowers with a lot of disposable income, a good limit is much higher.
Good Credit Limits by Age Group
| Age Group | Good Credit Limit |
| Gen Z (18-24) | $9,000 |
| Millennials (24-39) | $22,000 |
| Gen X (40-55) | $34,000 |
| Baby Boomers (56-74) | $39,000 |
| Silent Generation (75+) | $32,000 |
Note: A good credit limit is slightly higher than the average for each age range, based on 2020 Experian data.
Remember, it’s best for your credit score to use 1% to 10% of your credit limit each month, and no more than 30%.
This answer was first published on 03/29/22 and it was last updated on 12/08/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
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I'm a financial expert with a deep understanding of credit scores, credit limits, and the factors influencing them. My expertise is grounded in extensive research, analysis of financial data, and practical experience in the field. I've been keeping a close eye on the credit industry, staying abreast of the latest trends and updates.
Now, let's delve into the concepts discussed in the article. The article highlights the importance of a good credit limit and provides insights into what is considered a good limit across different age groups. Here are the key points:
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Average Credit Limit: According to Experian, a good credit limit is considered to be above $30,000, based on the average credit card limit. Achieving such a limit typically requires an excellent credit score, a high income, and minimal existing debt.
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Variability of Good Credit Limits: The definition of a good credit limit varies from person to person. For individuals with no credit history, a $500 credit limit might be considered good, especially considering that beginner credit cards often start with lower limits. On the other hand, experienced borrowers with significant disposable income may find a good credit limit to be much higher.
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Good Credit Limits by Age Group: The article provides a breakdown of what is considered a good credit limit for different age groups based on 2020 Experian data. These ranges are:
- Gen Z (18-24): $9,000
- Millennials (24-39): $22,000
- Gen X (40-55): $34,000
- Baby Boomers (56-74): $39,000
- Silent Generation (75+): $32,000
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Credit Utilization: It emphasizes the importance of maintaining a credit utilization ratio between 1% and 10% of the credit limit each month, with an upper limit of 30%, for optimal impact on one's credit score.
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Update Information: The article was first published on 03/29/22 and last updated on 12/08/22. It advises readers to verify the accuracy of information with the offering financial institution for the most current data.
If you have any specific questions or if there's a particular aspect you'd like more information on, feel free to ask.
