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What is a credit limit?
Put simply, your credit limit it’s the maximum amount you can borrow on a credit card.
How a credit limit works
Below we’ve provided a simplified example, just to show how credit limits work in practice.
How is your credit limit set?
Changing your credit limit
Many lenders offer the option to increase your credit limit if you need more flexibility on your existing credit card, or decrease it if you’d like to limit the amount of credit available to you.
Especially if you’re thinking of increasing your credit limit, ask yourself:
- Does this suit my borrowing needs, or should I consider other options?
- Will I be able to make repayments, even if my circumstances change?
It’s important to know that credit limit increase requests are subject to security and credit checks.
Where to find help
If you’re ever experiencing money worries, or would like additional support with Halifax products and services, please let us know so we can find a way to help.
Frequently asked credit limit questions
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You can check your credit limit in a few ways:
- Refer to your latest credit card statement.
- Sign in to Online Banking or the Mobile Banking app to see a credit card account summary.
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Lenders could reduce your credit limit for a number of reasons, including:
- A legal or regulation change.
- A lender, product or service change.
- Concerns that there’s an increased risk you won’t be able to repay what you owe.
We’ll always let you know if we decrease your Halifax credit card limit, which will be reflected in your online accounts and future statements.
Just so you know, a credit limit decrease could negatively affect your credit score, which could make it more difficult to get credit in future.
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Your credit limit isn’t set monthly or annually. It stays with you for as long as you have your credit card account, although it can increase or decrease over time, either because we’ve changed it, or you’ve requested a change.
A summary on credit limits
Your credit limit is the maximum amount you can borrow on a credit card.
- The credit limit offered is based on a lender’s assessment of your personal circumstances.
- Just like your credit score, your credit limit can go up or down over time.
- Stay within your credit limit to avoid charges and losing any promotional interest rates.
- Your credit limit isn’t a target – it’s up to you to only borrow what you need and can repay.
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Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.