What’s the Lowest Credit Card Limit You Can Get?

Getting approved for your first credit card is an exciting milestone. But don’t be disappointed if your initial credit limit is lower than expected. Most lenders start consumers off with relatively low limits, especially for those with little or no credit history.

With your first card, you’ll likely see limits between $300 and $500. But it is possible to get approved for a card with a limit as low as $200.

In this article, we’ll explain what determines your initial credit card limit and recommend the best low limit cards for building credit.

What Is a Credit Card Limit?

Your credit limit is the maximum amount you can charge to your card during each billing cycle. It functions like a revolving line of credit, allowing you to borrow up to the limit and repay it over time

The higher your limit, the more purchasing power you have. But if you max out your card and carry high balances, that can damage your credit.

Credit card companies determine your limit based on your:

• Income
• Existing debts
• Credit score
• Credit history length

For most people, the limit on their first card falls between $200 and $1,000. But it varies case by case.

Let’s look at the factors that determine your starting limit in more detail.

What Affects Your Initial Credit Limit?

Income

Lenders want to make sure you earn enough income to make your minimum payments. If you have limited income, you may receive a lower limit to start.

Many credit card applications ask for your individual and household income. Providing this information helps maximize your initial limit.

Existing Debts

Banks will look at your debt-to-income ratio when determining your limit. This measures how much of your income already goes toward paying debts.

If you have high existing debts relative to your income, lenders may cap your initial limit to minimize their risk.

Credit Score

Your credit score gives lenders a snapshot of your borrowing and repayment history. In general, the higher your score, the higher your credit limit.

Most people start building credit in the fair credit range (580-669). With scores in this range, expect initial limits around $300 to $500.

Credit History Length

If you’re applying for your first card, you likely have a “thin” credit file. Lenders prefer to see a longer history of managing credit responsibly.

With an unestablished credit history, banks will start you off with a relatively low limit. But responsible use can quickly lead to increases.

Now let’s look at some real-world data on average starting limits.

Average Initial Credit Limits

According to a 2022 WalletHub report, the average initial limit across all new credit card accounts is $1,358. However, this figure is skewed higher by applicants with established credit.

For your first card, here are more realistic expectations:

• Applicants with no prior credit history: $400
• Applicants aged 18-20: $450
• Applicants aged 21-24: $925

These numbers will vary based on your personal financial situation. But they provide a ballpark estimate of what to expect with your starter card.

Next let’s look at the lowest credit limits issuers will approve.

The Absolute Lowest Credit Card Limits

Every lender has their own minimum credit limit policies. But across all card issuers, here are the lowest limits we typically see:

• Non-secured cards: $200 to $300
• Secured cards: As low as $200 (based on your security deposit)
• Retail store cards: $100 to $300

Again, your personal situation determines where you fall within these ranges. Expect the low end if you have very limited income or credit history.

Now let’s look at some of the best low limit card options.

Best Low Limit Credit Cards

Here are some excellent starter cards offering lower credit limits for building credit:

Petal® 2 Visa® Credit Card

• Credit Required: No credit history OK
• Credit Limit: $300 to $1,000
• Highlights: No annual fee. Up to 1.5% cash back on purchases. Easy online application.

Capital One Platinum Secured Credit Card

• Credit Required: No credit history OK
• Credit Limit: $200 security deposit
• Highlights: No annual fee. Don’t need a credit check. Build credit with responsible use.

Discover it® Secured Credit Card

• Credit Required: No credit history OK
• Credit Limit: Minimum $200 deposit
• Highlights: Rewards program earns 2% cash back at gas stations and restaurants. Matched cash back after first year.

OpenSky® Secured Visa® Credit Card

• Credit Required: No credit check
• Credit Limit: Minimum $200 deposit
• Highlights: Easy approval odds. Great for rebuilding credit. Higher limits available with additional deposits.

Any of these cards make excellent options for consumers needing to establish a credit history. Their low minimum limits make approvals accessible. Responsible use can quickly demonstrate you deserve a higher limit.

How to Get a Higher Limit

The best way to increase your credit limit is to use your card responsibly:

• Make at least the minimum payment every month
• Pay off statement balances in full to avoid interest
• Keep credit utilization low (at or below 30% of your limit)
• Avoid late payments or going over your limit

Many issuers review your account periodically for credit limit increases. So you may see your limit rise automatically over time with responsible usage.

You can also request a higher limit after making payments on time for 3 to 6 months. This signals you can handle more available credit. Limit increase requests are typically made by phone or through your account website.

Finally, opening additional credit cards and improving your credit score can lead to higher limits. Just be sure not to open too many cards at once.

Closing Thoughts on Low Limit Credit Cards

A lower starting limit doesn’t mean you’re stuck there forever. Consistently demonstrate responsible credit management, and your limit should increase.

Low limit cards help start the credit building process for those with limited financial histories. Over time, your improved score and repayment track record will unlock higher limits and more card options.

Focus on using your first card properly, and the rest will follow. Your credit journey starts with that initial lower limit account.

The lowest credit card limits are typically found with secured credit cards and student credit cards, often starting around $200 to $300.

Yes, it’s possible to get a credit card with a $1,000 limit. Many credit card issuers offer cards with initial credit lines of $1,000, especially for those with less-than-perfect credit or those starting to build credit.