Know your limit: Does your credit card limit match your budget?

Choosing the right credit limit can help you save money on interest costs, manage credit card debt, and keep your finances on track.

How reducing your limit can increase your financial wellbeing

When your circumstances change, it’s a good time to think about whether your credit card limit still works for you. Having too high a limit can end up costing you, as you may end up spending more and paying extra in interest costs if you can’t pay off your credit card balance in full each month.

Here are some signs you may want to consider having a lower credit limit:

  • You can’t pay off your balance in full by the due date each month
  • You sometimes use your credit card to make impulse buys you haven’t budgeted for
  • You struggle to keep on top of your budget
  • You’re finding it tough to meet a savings goal that you’ve set.

Working out the right limit for you

Everyone’s situation is different. To figure out the most appropriate credit card limit for you, consider:

Your budget

Your budget is a key financial tool that helps you work out how much money you have left after paying essential expenses, e.g. power bills, rent, mortgage payments.

Review your budget to see how much you can afford to put towards your repayments. Remember, to avoid paying interest on your credit card purchases, you should aim to pay off your balance in full each month. 

If you don't have a budget, our free budget planner can help you create one.

Your money personality

Are you a saver or a spender? How disciplined are you?

If you sometimes make impulse buys, reducing your credit card limit can help you avoid temptation.

Any life changes

If your circumstances change, e.g. you’re temporarily out of work or your income has reduced, then you may want to consider reducing your credit limit.

Reducing your credit limit is simple

If you decide you want to reduce your credit card limit, just contact your bank or card provider – they should be able to arrange it for you straight away. Minimum limits can apply.

Remember, your credit card limit isn’t set in stone. It’s a good idea to review it regularly, to see whether it’s higher than you really need. And if it is, a simple phone call to your bank or card provider can help you keep your finances on track.

If you’re an ANZ customer and have the goMoney app, you can easily decrease your credit card limit. Just go to Services and then Manage cards within the app and follow the instructions. Eligibility criteria applies.

Important information

The information is current as at August 2020 and may be subject to change.

Information in this article refers to personal credit cards, is general in nature only and does not take into account your personal objectives, financial situation or needs. The information may not reflect how interest and charges are calculated under your credit card conditions of use. We recommend you review your personal credit card conditions of use for information about the terms that apply to you. Talk to us for financial advice and see our advice statement.

Lending criteria, terms and fees apply to all ANZ credit cards. See Rates, fees and agreements for more information

Eligibility criteria and terms and conditions apply to ANZ Internet Banking, ANZ goMoney and ANZ Phone Banking. See our ANZ Electronic Banking Conditions (PDF 138KB) for more information.