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What is a credit limit?
How borrowing is limited and what that means for you.
A quick summary
Your credit limit is the maximum amount of money, in total, you can borrow on your credit card at any one time.
- An initial amount is set by your provider when you apply for your card, but this can change over time.
- It’s usually based on your individual circumstances and credit score.
- Remember, it’s still up to you to only borrow what you can afford.
How much can I borrow on a credit card?
Your credit limit tells you exactly how much you’re allowed to borrow. To show you how a credit limit works, we’ve simplified the example below. For more detail, visit our page on how a credit card works.
What happens if you go over your credit limit?
- Any transaction that might take you over your credit limit may be declined.
- Your credit score could be affected.
- It might also change how we view your ability to repay borrowing.
- So, it’s important to always stay within your credit limit.
How can I increase my credit limit?
Every credit card provider has a different process. There are two ways that you can request credit limit increases from us. Although, we’ll only offer you an increase if we think you can afford it.
Let’s look at the details
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You’ll find your credit limit on your credit card statement, whether you receive digital or printed copies.
If you log on to Internet Banking or our Mobile Banking app, you’ll also be able to see the credit limits of your different cards there.
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Yes. Although, this process varies depending on your provider.
You can usually request a credit limit increase, but you’ll need a payment history of at least six months on your account and you’ll have to go through an eligibility check, so approval isn’t guaranteed.
You can usually request a credit limit decrease whenever you like.
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Your credit limit may be reduced for a range of reasons – such as a change in the products or services your provider offers, or a change in law or regulation.
Some banks will decrease your credit limit, or even limit your ability to use your card, if they reasonably believe that there’s a significantly increased risk that you will not be able to repay what you owe.
If we ever do this, Lloyds Bank will always tell you as soon as possible afterwards and show you the amount you’re still able to spend on your statements and on Internet Banking or Mobile Banking app immediately.
A credit limit decrease can impact your overall available credit, which could negatively impact your credit score.
Key points on credit limits
- Your credit limit is the maximum, in total, you can borrow on your credit card at any one time.
- Your credit limit is usually based on your credit score and individual circumstances.
- Just like your credit score, it can go up or down over time.
- Try not to go over it, or you might end up losing any introductory/promotional interest rates and offers you have.
- Remember, it’s still up to you to only borrow what you can afford.
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