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Credit limits explained

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What is a Credit Card limit?

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What is a Credit Card limit?

A credit limit is the financial boundary set at the start of your Credit Card contract. All Credit Cards have a maximum and a minimum credit limit.

When you apply for a Credit Card, you will have the opportunity to indicate your highest preferred Credit Card limit. You should ensure that you nominate a Credit Card limit that is in line with your current financial circumstances. It’s also important to note that choosing a low limit during the application process will not change your chances of approval. If you don’t choose a limit, we will assign you one, based on your current financial circumstances.

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Decrease and increase your credit limit

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Decrease and increase your credit limit

You can change your credit limit at any time1. If you decide you would like more credit, you can request a credit limit increase online or by calling the number on the back of your Card. Before you apply for an increase, it is important that you consider your personal financial circumstances. It is required that we assess your capacity to repay the higher limit before we approve it. Applications for a higher credit limit are processed immediately, and if approved, you will usually have the higher limit within one hour.

If your limit is higher than you need it to be, you can request a credit limit decrease as long as it remains above the minimum limit and your total balance owing by calling the number on the back of your Card.

From time to time, we may offer our Card Members the opportunity to apply for a credit limit increase. If you’re interested in receiving communications on these offers, you can opt in to credit limit increase offers here.

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Minimum Credit Card limits

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Minimum Credit Card limits

Your minimum credit limit depends on the type of Credit Card you choose. It is the lowest limit that the lender is prepared to offer you. The actual credit limit you will be offered will be somewhere between the minimum and maximum credit limits of the Credit Card.

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Cards without a credit limit

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Cards without a credit limit

If you’re looking for a Card that does not have a credit limit, then you may want to consider a Charge Card. These act like Credit Cards, except that you will have no pre-set spending limits2, and you have to repay your balance in full by the due date to avoid incurring fees.

Learn more >

Useful terms

Useful terms

  • Credit Card limit: Credit limits are the financial boundaries set at the start of your Credit Card contract. All Credit Cards have a maximum and a minimum credit limit.
  • Repayments: When your statement arrives, you will have a choice of repayment options. You can pay off the entire Credit Card bill on, or before, the statement due date – in which case you’ll avoid paying more interest.
  • Minimum repayments: You can choose to spread your Credit Card repayments out over time by paying at least the minimum monthly repayment amount. This option will mean you will be paying more interest.
  • Interest: When you use your Credit Card, you are effectively taking out a loan – and will be charged interest unless you repay the full closing balance within a specified period. Interest is usually expressed as an annual percentage rate, also known as the interest rate.
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Tips on staying within your Credit Card limit

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Know your credit limit

Knowing your maximum credit limit is the first vital step to staying within it. If you find you’re close to your credit limit, making an interim payment will reduce the risk of you going over it.

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Pay off as much as you can

Paying more than the minimum amount required will reduce the amount of interest you’ll be charged on your remaining balance, and will help you pay off the full amount faster.

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Make use of our tools

You can login to your online account or download the mobile app to keep track of your spending. You can also set up automatic email or SMS alerts that let you know when your payment due dates are approaching, or when you are approaching your credit limit.

FAQs

How do I change my credit limit?

How do I change my credit limit?

You can request to increase your credit limit by logging into your American Express® online account or calling the number on the back of your Card. You can request to decrease your credit limit by calling the number on the back of your Card and speaking with one of our customer care professionals.

What is the highest credit limit I can apply for?

What is the highest credit limit I can apply for?

Our Platinum Credit Cards can have credit limits of up to $50,000. All other Credit Cards have limits of up to $25,000. Your limit will depend on your financial circumstances and the Card type you choose.

Explore our Credit Cards >

Can I get an Increased Credit Card Limit without paying off my closing balance?

Can I get an Increased Credit Card Limit without paying off my closing balance?

Yes, but please ensure that there is no overdue balance on your account when you apply for an increased credit limit as this may impact approving your request.

If I lower my Credit Card limit, can I increase it again?

If I lower my Credit Card limit, can I increase it again?

Yes, although there are waiting periods before increasing your credit limit again. You are able to apply for a credit limit increase to one Credit Card every six months.

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Why choose American Express?

Accepted at more places

With more Merchants in Australia choosing to accept American Express, including the big brand stores you spend at every day, your points will add up fast.

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Membership experiences

We believe our Card Members deserve more. Discover how we reward our Card Members.

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A great range of Cards

From Charge Cards to Credit Cards – you’re bound to find something to suit your needs.

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Terms and Conditions

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Terms and Conditions

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1. To be eligible for a limit increase you must have a good repayment history on all your accounts. There are limitations to how many times you can increase your credit limit in a given period of time. There are no limitations as to how many times you can decrease your credit limit in a given period of time, provided you don't lower your credit limit below your total balance owing. We are required by consumer legislation to ask you to provide your income and expense details. We are also required to use the details you provide to assess your capacity to meet the repayments on the increased limit.

2. No pre-set spending limit does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit records, and financial resources known to us.