American Express Credit Card Limit: What Is And How Is It Determined?

The average Amex cardholders’ spending reached over $24,000 per year. However, if you’re looking to spend more, you might need to ask for a credit limit increase.

Interested in unlocking the American Express maximum credit limit? Stick around—we’ve got all the details.

What Is an Amex Credit Card Limit?

Your Amex credit card limit is the maximum amount you can charge on your card. You can find this limit in your online banking account and on your monthly billing statement. It’s set by the financial institution that issued your card sets this limit and specifies the length of a statement period.

How Is the American Express Credit Card Limit Determined?

Several aspects influence how your credit limit is set, guiding the card issuer before making a decision.

Credit Score

Your credit score plays a huge role in determining your Amex credit card limit. Scores range from 300 and 850. A credit threshold of 700 or more is generally considered good. Simply put, with a solid credit score, you’ll likely get a credit line increase.

Income Level

The card issuer will likely ask you to verify your income before issuing you a credit card. Living expenses, such as rent or mortgage payments, will be taken into account. Typically, if you have a high income and low expenses, you’re more likely to snag a higher credit line.

Debt-to-Income Ratio

This ratio compares the amount of debt you owe to your income. Don’t expect to get approved for a high credit limit with a substantial debt. In contrast, if you’re earning well and keeping your debt low, your chances of receiving a higher credit limit go up.

Credit History

The length of your credit history also affects the American Express card limit. Your chances of receiving an increase grow with a more extensive credit history. Additionally, your chances will be boosted if you have paid on schedule.

Credit Limit vs. Available Credit

These two terms might sound similar, but they’re not the same. Understanding the difference is crucial.

Credit Limit

The biggest amount you can charge on a credit card is known as the credit limit. It’s renewable, meaning once you pay off your balance, your limit resets.

Available Credit

Available credit is the remaining amount after subtracting your current balance and any pending charges from your total credit limit. For example, if your limit is $15,000, and you’ve used $2,000, you have $13,000 in available credit. Paying off $1,000 would bump your available credit up to $14,000. Just be cautious about maxing out your card—it can hurt your credit score over time.

How Does Your Credit Limit Affect Your Credit Score?

Your credit utilization ratio—how much of your credit limit you’re using—directly impacts your credit score. It represents the percentage between a credit limit and a current credit card amount. Using too much of your limit can drag down your credit score. Each month, your card balance is reported to the three major bureaus, which then use this info to calculate your credit score. To keep your credit in good shape, aim to keep your utilization ratio below 30%.

Charge Cards

If you’re after a card with no fixed credit limit, consider charge cards. They offer financial flexibility for purchases, but you’ll need to pay off the full balance each month.

How to Boost the Credit Limit for American Express?

Request a Credit Line Increase

Start by contacting Amex to request a credit limit increase. Credit line increases are available to Amex customers every six months.

Improve Your Credit Score

Since lenders see higher credit scores as indicators of reduced credit risk, raising your score might help you get approved for a larger credit line. It reflects appropriate credit management, such as regular payments and minimal credit use, which convinces lenders to raise credit limits. So focus on managing your credit responsibly—make payments on time and keep your credit utilization low.

Update Your Income Information

If your income has increased—whether through a new job, a raise, or additional income streams—be sure to update your income information with Amex. You can do this through your app or online account or by calling customer service.

Use Your Card Regularly

The more you use your card for everyday purchases, the more likely Amex is to approve a higher limit.

Avoid Late Payments

The longer you go without missing payments, the higher a client is ranked. Also, make sure to pay off any outstanding balances with other banks. If you’ve got unpaid debts elsewhere, Amex checks your credit history and might hesitate to extend your limit.