Having lots of available credits means that when you apply for another credit card, you won’t be using it, but that’s the only negative consequence that you really worry about. You don’t have to worry about the available credits unless you are tempted to make the most of the available credit limits.
In fact, you can have more credit than you need when it comes to credit utilization, one of the most important categories that contribute to your credit score. This factor accounts for 30% of your FICO credit score. This means that the more credits you have available, the easier it is to score in this category.
Is high credit limits a bad thing?
High credit limits are definitely not “bad.” In fact, this shows you have been rewarded for having a high income and maintaining a good credit score or both. Generally speaking, a high credit limit will tell future creditors that you can borrow money and pay it back on time.
High credit limits do not mean you need to use them, and if your spending doesn’t get close to your limits, you will not be punished. High credit limits result in lower credit usage and plenty of room to maintain.
Most experts agree to maintain credit usage below 30% of available credit limit It’s a good ideaand keeping credit usage below 10% helps your credit scores. This means you can keep your credit card balance below $3,000 for every $10,000 available. For the best results, this means keeping available credits below $10,000 available credits below $1,000, and less than $1,000 for every $10,000 of the best available results.
If a single credit card has a credit limit of $20,000, this means that you can borrow $2,000 on that card and score very well on your credit usage. Ultimately, high credit restrictions give you more wiggle room to balance without damaging credit and credit scores that are starving for the credit bureau.
Can I get rejected if there are too many credits available?
Yes, you may be denied a new credit card based on too many credits available. The card issuer may determine that he has income and credit to support a particular available credit. This means that if you have already achieved that limit on the entire issuer and other cards, you may get a denial.
If you are applying for another card with an issuer who already gives you a generous amount of credits available, there are workarounds that you might want to give it a try. If you apply for a new card with that issuer and are not immediately approved, call the issuer’s credit card review line to see if you can transfer available credits from your existing card to your new account.
For example, if a card has a credit limit of $30,000, you could, for example, lower that limit to $20,000 and move the $10,000 credit limit to the new card you are applying for. At the very least, if you have other accounts that are in good condition with the issuer, you should call and ask about this possibility. They may say “no” to your request, but you will never know unless you ask.
What is the ideal amount of credit available?
The ideal amount of credit available is more than 90% of the credit limit. For best results, try to maintain at least $9,000 in available credits.
You can also make sure you have enough available credits to carry out an emergency, especially if you are building it. Restructuring the Emergency Fund. For example, it makes sense to have enough available credits to cover a surprise car repair, so you can bring your car back on the road and go to work.
Most experts suggest that you save 3-6 months of emergency expenses just in case. Best High Yield Savings Account Provide advanced APY to help you build your emergency funds as quickly as possible.
As of June 2024, 29% of people said they had some savings but were not enough to cover the cost of three months. Bankrate Emergency Savings Report. Credit cards with plenty of credit available will serve as a true emergency backup. The card is also a convenient way to advance the cost of your emergency fees before you refund yourself from the emergency fund. It would be even better if you could pay with cashback or travel reward cards. This will allow you to earn rewards for emergency payments that you can repay immediately.
Average credit limit statistics
According to information from the credit reporting agency Experian, the average credit limit for Americans differed dramatically depending on age and power generation in 2024. The average credit limit has increased across the nation for all generations from 2023 to 2024, with baby boomers gaining the highest average credit limit overall.
| generation | Average credit limit 2023 | Average credit limit 2024 |
| Source: Experian State of Credit Cards | ||
| Generation Z (ages 18-27) | $12,899 | $14,195 |
| Millennials (ages 28-42) | $27,533 | $29,665 |
| Generation X (ages 44-59) | $38,665 | $40,551 |
| Baby Boomers (ages 60 to 78) | $41,906 | $42,824 |
| Silent Generation (ages over 79) | $32,812 | $32,889 |
Average balance statistics
Experian Data also revealed that as of the third quarter of 2024, Americans of all ages had an average credit card balance of $6,730. This average is 3.5% higher than the average credit card balance last year.
The average credit card balance also changed with generations in 2024, but increased in all generations compared to the previous year.
| generation | Average credit card balance 2023 | Average credit card balance 2024 |
| Source: Experian State of Credit Cards | ||
| Generation Z (ages 18-27) | $3,262 | $3,456 |
| Millennials (ages 28-43) | $6,521 | $6,932 |
| Generation X (ages 44-59) | $9,123 | $9,557 |
| Baby Boomers (ages 60 to 78) | $6,642 | $6,754 |
| Silent Generation (ages over 79) | $3,412 | $3,428 |
Average credit usage
The average credit usage rate varies from generation to generation, and the results are not so surprising. Experian data shows that older consumers tend to use less of their available credit overall, while younger credit card users tend to have higher credit card balances.
The following chart lists the average credit usage per generation for the third quarter of 2024 in credit reporting agency Experian.
| generation | Average credit usage | Average credit score |
| Source: Experian State of Credit Cards | ||
| Generation Z (18-27) | 37% | 681 |
| Millennials (28 – 43) | 36% | 691 |
| Generation X (44 – 59) | 34% | 709 |
| Baby Boomer Generation (60 – 78) | twenty one% | 746 |
| Silent Generation (79+) | 12% | 760 |
Average credit utilization varies dramatically within each tier of each credit score for 2024. Experian data shows that average credit utilization is much higher for people with inadequate credits, but consumers with better credits tend to use less overall credits.
The following chart shows the average credit utilization rates by credit score range for the third quarter of 2024 per credit reporting agency Experian.
| FICO score range | Average credit usage 2024 |
| Source: Experian State of Credit Cards | |
| 300-579 (poor) | 80.7% |
| 580-669 (Fair) | 61.4% |
| 670-739 (good) | 38.6% |
| 740-799 (very good) | 15.2% |
| 800-850 (Exception) | 7.1% |
Conclusion
There’s no need to worry about too many credits available, but there are other credit factors to pay attention to. To get the best chance with the best possible credit score, prioritize paying your bills early or on time, while striving to keep your credits as low as possible. If the credit limit is high, the second part of the equation actually becomes easier. So you don’t need to keep many of the credits available at night.
