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The Highest Limits
Credit cards limits in Canada vary so much, it is difficult to determine what the highest limit is. The limits are based on different factors based on your personal situation, so the highest limit isn’t really known. That being said, there are some credit cards that have limits upwards of $100,000. Some others have been known to go up to $500,000. It’s not common for credit card limits to be higher than $500,000 though.
Average Credit Card Limits
While credit card limits can be upwards of $500,000, that really isn’t the norm for most Canadians. Surprisingly enough though, 41% of Canadians have a credit card with a limit of $10,000 or more. Only around 15% of Canadians have a card with a low credit limit of $2000 or less. The average limit overall is $13,000.
Why It’s More Common to Have a Higher Limit
While it may seem obvious that having lower credit card limits on your credit cards is better, it really isn’t about the limit. Credit cards are all about how you use them. If you use them properly they can have a positive impact on your credit score.
Credit utilization is important when it comes to credit cards. It is recommended that you keep your credit card balance at less than 35% of your card’s credit limit in order for the credit card to have a positive impact on your credit score. So for a $10,000 limit, the maximum recommended usage is $3,500. This is one of the reasons why a $10,000 limit is more common than a $2,000 limit. With a $2,000 limit, you are more likely to go over the 35% usage.
Maximum Limits on Different Cards in Canada
When you are looking for a high limit credit card, not all of them are advertised. You may have to speak with a representative if you are looking for a card over $50,000. That being said, we did find some big name cards that have their maximum credit limits listed.
| Credit Card | Interest Rate | Annual Fee | Maximum Credit Limit |
| RBC Visa Platinum | 19.99% | $0 | $50,000 |
| BMO Cashback Mastercard | 20.99% | $0 | $100,000 |
| American Express Cobalt Card | 20.99% | $155.88 | $100,000 |
| Tangerine World Mastercard | 19.95% | $0 | $100,000 |
These are just a few of your credit card options. Scotiabank's also offers a bunch of different credit cards with varying annual fees, but there is no maximum credit card limit listed. That being said they do offer lines of credit with limits up to $75,000.
Factors That Decide Your Credit Card Limit
When it comes to credit card limits, there are a few different factors that decide whether or not you will get the maximum limit that you are looking for.
Credit Score
Having a good credit score and credit rating are important when applying for a credit card, especially a high credit limit card. The more you are able to prove how financially responsible you are, the more likely you are to get approved.
When checking your credit score, lenders will also be able to see your credit report. This will show them all of your credit history that will reflect your credit score. Whether you have a high credit score or a low credit score, lenders will use this information to determine what you are eligible for.
Income
How much money you make is directly related to what your credit card limit will be. This is also how some issuers decide which credit card to give you. Many credit cards have income limits that will determine if you are eligible for them or not.
Debt-to-Income Ratio
Your debt to income ratio makes a big difference in what your approval amount will be. Issuers like your DTI to be lower than 40% to give you an approval. This ensures that they will get their money back. The lower your DTI, the more likely you are to have a higher credit limit. The higher your DTI, the more likely you are to have a lower credit limit.
Credit Card Issuers
The issuers play a large role in what card you get approved for and for which limit. Just because you get approved for a small limit for one card, doesn’t mean that you won't be approved for a larger one with a different issuer. With the exact qualifications, every issuer will have a different approval amount.
Current Credit Cards
If you have any other credit card accounts, issuers will look at those cards and their limits. It will show them how you can manage a credit card. If you already have other cards with higher credit limits then you are more likely to get approved with a high limit again. That is, if you are responsible with that current card.
Average Limits by Age
If you are looking for a credit card, age doesn’t really make a difference. If you have never had a credit card before, no matter how old you are, then you are likely to start with a lower limit or a secured credit card.
While people are at different stages of their lives based on their age, there is no data on average age related to credit card limits in Canada. Salary makes a bigger difference when it comes to what credit card limit you will receive.
Credit Card Limits Based on Salary
You may have already guessed, but the larger your salary then the higher your credit card limit is likely to be. Depending on what your salary is, you may not even be eligible to apply for certain cards.
$30,000 Salary
With a $30,000 salary you are likely to get a lower initial credit limit, especially if you have debt. With a salary of $30,000 you are eligible for credit cards that have no minimum salary requirement and may or may not have an annual fee. That being said, if you make all of your minimum monthly payments and keep your credit utilization low, you could qualify for a credit limit increase.
$50,000 Salary
With a $50,000 salary you probably aren’t getting a $50,000 credit card. Depending on your financial situation, though, you could get a higher limit of $7,000 or even $10,000. It all depends on your credit score, financial situation and other debts you hold.
$100,000 Salary
With a salary of $100,000 you have a few more options. The more exclusive credit cards, from the major banks like RBC or Scotiabank, require minimum incomes of $60,000 or $80,000. What the limits on these cards are though, are determined by factors other than income. Often these cards not only allow for higher limits, they also allow for more exclusive rewards.
Overview of Credit Card Limits
Credit card limits are important when it comes to your credit score, as well as your overall debt. No matter what your credit card limits it, it is important that you keep track of your balance. Keeping your balance under 35% of your limit on your credit card statements, and making your minimum monthly payments will be the best way to improve/ maintain your credit score. It is also important to remember that if you choose to use your credit card for cash advances, the interest rate is either the same or higher than the advertised rate of your credit card. Not only is it more expensive, but there is likely to be a limit on them that is less than your overall credit card limit.
