 TITLE: What Is a Credit Limit and What Determines My Limit? CONTENT: How Is Your Credit Limit Determined?\n------------------------------------\nCreditors want to offer you a high enough credit limit that you'll be able to use the card or credit line freely, but not so high that you could take on debt you can't afford to repay. To help them determine the credit limit on a new or existing account, creditors will look at a variety of factors. These may include:\n*   Your current income, debts and your debt-to-income ratio (DTI)\n*   Your credit history and score\n*   Your history with the creditor\n*   The current economic environment and the creditor's business goals\nYour income is one thing but, as you can see, creditors are also interested in how it compares to existing debt obligations including other loans and credit cards you already have. Creditors use DTI to help determine whether you'll be able to easily make minimum payments on all your accounts if you take on additional debt. After all, even if you make a six-figure salary, you may not have room in your budget to pay off a credit card balance if most of your income goes to paying your mortgage.\nAdditionally, credit card issuers consider how much credit they're already extending to you across all your accounts. As a result, your application for a new credit card might be denied because you're maxed out on the cards you already have.\nYour credit scores are another factor creditors look at when deciding whether to approve or deny you credit and the credit limit you receive. They also affect your interest rate. END