What factors determine the credit limit?



Some people may often ask, “Why is my limit so low?” What are the criteria for determining the credit limit? This depends on the situation. I will explain it with three cases: the first application, the reapplication, and the daily withdrawal. Since the rules vary from bank to bank, I only discuss the general situations here.

The first time applying for a card


When applying for a card for the first time, there are two factors that affect the approved credit limit: card level and cardholder backgrounds.

Cardholder backgrounds:

1. Personal income: monthly income, nature of company, and job position.

2. Personal academic title: Higher academic qualifications and technical titles will increase the credit limit.

3. Family conditions: whether you are married, and whether you are a local.

4. Personal assets: whether you have personal assets, such as houses, cars, bank deposits, etc.

5. Other credit cards and limit: If you have a credit card from another bank with a higher limit, you can also apply for a higher limit in this bank. But if you own too many credit cards, your application will be rejected. 

Applying for a second card

For cardholders who apply for a second credit card, the bank will give credit limit based on the applicant’s income, credit cards that have been processed by other banks, and their usage records. As long as the cardholder has no overdue repayment record and has a certain ability to repay, the bank will give enough credit limit.

However, for some cardholders who have applied for credit cards multiple times, have overdue repayment records, and maintain the minimum repayment for a long time, the bank will generally not approve the card or the approval limit will be very low in order to reduce the risk.

Daily limit increase

In the normal use of a credit card, if the amount needs to be raised, the bank’s approval is generally based on the cardholder’s card usage record: whether the number of card usage is enough; whether the daily quota usage ratio is high enough; whether the repayment can be made on time and so on.

If the cardholder has a good card usage record, the bank will generally accept the application and approve it. There are also some banks that do not allow applicants to apply on their own initiative, and that whether to approve the application can only be judged by the bank.

Of course, there are also skills to increase the amount. The three most effective tricks are: using credit cards as much as possible, usual installment, and shopping overseas.


Although high credit limit is good and can solve urgent needs, it is best to have an appropriate limit according to your own consumption habits. Excessive quota is usually useless, and once your credit card is stolen, your economic losses will increase a lot. It is recommended that we choose the most proper credit limit for ourselves.