Is credit limit shared between cards?

Do Credit Card Limits Get Shared Across Cards?

When you first get approved for a credit card, it’s common to assume that you have a single credit limit that you can use across all of your cards. However, this is not always the case. In fact, many credit card companies will establish separate credit limits for each individual card you have.

Individual Credit Limits

Typically, when you apply for a credit card, the issuer will set a credit limit for that specific card. This limit is based on a variety of factors, including your creditworthiness, income, and debt-to-income ratio. Once the credit limit is set for a particular card, it will not be shared with any other cards you may have from the same issuer.

This means that if you have two credit cards with the same issuer, each card will have its own separate credit limit. You can use up to the full amount of the credit limit on each card without affecting the other.

Shared Credit Limits

In some cases, credit card companies may offer shared credit limits. This means that the credit limit you have on one card can be shared with other cards you have from the same issuer. For example, you might have a credit limit of $5,000 on one card and $2,000 on another card. With a shared credit limit, you could use up to $7,000 total on both cards.

Shared credit limits can be beneficial if you want to have more flexibility with your spending. However, it’s important to remember that if you use more than the total credit limit, you will be charged overdraft fees.

How to Determine Your Credit Limits

The best way to determine your credit limits is to contact your credit card issuer. They will be able to provide you with the specific credit limits for each of your cards. You can also check your credit card statements to see your current balances and available credit.

It’s important to stay within your credit limits to avoid damaging your credit score. If you consistently use more than your credit limits, your credit score will likely drop. This can make it more difficult to qualify for new credit cards or loans in the future.