30-yr fixed 6.43% ▾ 0.06 wk
15-yr fixed 5.79% ▾ 0.04 wk
HELOC avg 7.90% — no change
Auto 60-mo new 6.82% ▴ +0.03 mo
Personal 24-mo 11.57% ▾ 0.12 qtr
Credit card APR 21.52% ▴ +0.09 qtr
as of Jul 2, 2026 · Federal Reserve / Freddie Mac via FRED (St. Louis Fed)
Glossary

Credit limit

The maximum you can borrow on a revolving account like a credit card — a key input to your credit utilization ratio.

A credit limit is the ceiling an issuer sets on a revolving account. It matters beyond just how much you can spend: your balances relative to your limits (your utilization ratio) is the second-biggest factor in your credit score, so a higher limit — used responsibly — can actually help your score by lowering utilization. Issuers set limits based on income, credit history, and risk, and may raise them over time as you demonstrate reliable repayment.

Ready to use it? See credit limit in context →

Related terms

  • PMI Private mortgage insurance — a monthly premium that protects the lender, not you, when your down payment is under 20%.
  • Credit utilization ratio The share of your available revolving credit you are currently using — the second-biggest factor in your credit score, after payment history.
  • Underwriting The process a lender uses to verify your income, assets, debts, and credit before approving a loan — the "yes or no" behind every offer.
  • Secured credit card A credit card backed by a cash deposit you make upfront — the deposit becomes your credit limit, and it is the standard tool for rebuilding credit.
  • Unsecured A loan that requires no collateral — approval rests on your credit profile and income.
  • Origination fee An upfront charge (0–8% of the loan) deducted before funds reach you. A $10,000 loan with a 5% fee delivers $9,500 — but you repay all $10,000.

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