Are you aware of your credit card limit, the total dollar amount that your credit card issuer will generally allow you to spend without involving penalties, fees, or declined transactions? If you do not spend anywhere close to your limit, you may not care about it – but you should. Your credit card limit plays a role in your credit score, and vice versa.
According to data from Experian, one of the three major credit bureaus along with Equifax and TransUnion, the average credit card limit in the U.S. as of December 2016 was $8,071. However, average credit limits vary greatly with cardholders' credit scores.
Borrowers with Deep SubPrime credit, defined as a credit score of 300-499 on the VantageScore system, have an average credit limit of $1,834. On the other end of the scale, borrowers with SuperPrime credit (credit scores above 781) merit an average credit lim...
from MoneyTips https://www.moneytips.com/does-your-credit-card-limit-measure-up/885
No comments:
Post a Comment