Credit Limit
A credit limit is the maximum balance a lender lets you carry on a credit card or line of credit. It affects your credit score through utilization — the share of your limit you're using — so a higher limit with the same spending can actually help your score.
The limit matters for your credit score as much as for your spending, because utilization is the balance divided by it. A $3,000 balance on a $10,000 limit is 30%; raising the limit to $15,000 drops it to 20% without repaying anything, which is why a limit increase can lift a score within a billing cycle. Ask whether the issuer uses a soft pull — many do, making the request free. Two cautions: it only helps if the extra room goes unused, and closing a card later removes its limit from the calculation, so paying off and cancelling a card can lower your score. Issuers can also reduce limits without warning.
Put it to work
Credit Card Payoff Calculator
How long to pay off your credit card at your current payment — and the exact monthly amount to be debt-free in 12, 24, or 36 months.
Credit Utilization Calculator
Work out your credit utilization ratio, see which band it falls in, and find exactly how much to pay down to reach a target before your statement closes.