Credit Limit
Your credit limit is the maximum dollar amount your card issuer will allow you to carry on your credit card at any given time. It applies to the combined total of purchases, cash advances, fees, and interest on the account. Attempting to exceed your limit may result in a declined transaction, an over-limit fee (if your issuer charges one), or both. The limit is set at account opening and can be revised over time.
Credit limits in Canada range widely — from as low as $300 on secured or student cards to $100,000 or more on ultra-premium cards like the American Express Centurion. The limit offered to you depends on your income, credit score, existing debt, and the issuer’s internal criteria.
Quick Facts
| Detail | Value |
|---|---|
| Typical secured/student card | $300 – $1,000 |
| Typical standard card | $1,000 – $10,000 |
| Premium cards | $5,000 – $25,000+ |
| Ultra-premium (e.g., Amex Centurion) | $100,000+ |
| Recommended utilization | Below 30% of limit |
| Excellent utilization | Below 10% of limit |
| Increase eligibility | Typically after 6+ months of good history |
Canadian Context
In Canada, issuers are required by the FCAC to obtain your consent before raising your credit limit — unlike some US issuers that raise limits automatically. You can request a credit limit increase in writing or by phone, and the issuer may perform a hard inquiry when evaluating the request. Keeping your utilization under 30% of your credit limit (across all cards combined) is one of the most impactful ways to maintain a strong credit score in Canada, as credit utilization makes up approximately 30% of your score.
Related Glossary Terms
Information on this page is provided for general educational purposes. Credit limit policies and eligibility criteria vary by issuer — always verify details directly with your card issuer.