What is the ideal credit card limit and how do I set it? 

Determine the ideal credit card limit is an issue that can directly impact the consumer's financial health. 

Many people wonder how to set a value that is useful without compromising their personal budget. 

The answer involves understanding how credit limits work, knowing your financial profile, and making informed choices. 

In today's text, you'll find information that will help you set a limit that increases your purchasing power and not your ability to become over-indebted.  

Check it out! 

What is the credit limit?

Simply put, the credit limit is the maximum amount that the bank or financial institution makes available for use on your credit card. 

It can be seen as a pre-approved loan, which you can use at any time, with the obligation to repay on the agreed date. 

This limit is set based on an analysis of your financial profile, including income, credit history, and other variables.   

Providing personal and income information is essential for the financial institution to set a limit appropriate to your profile. 

We often look for credit cards with high limits that are easy to approve. 

However, when applying for a card, these points should not be considered the main selection factors. 

Therefore, it is essential to choose a product that follows your financial behavior and adjusts your credit limit according to your financial reality. 

How does the ideal credit card limit work?

The ideal credit card limit It should be enough to cover your monthly needs without exceeding an amount that compromises your budget. 

Experts recommend that the limit not exceed 30% of your monthly income. For example, if you earn R$ 5,000 per month, your credit limit should not exceed R$ 1,500. 

This measure helps ensure that your card expenses don't snowball into an unmanageable expense.

Read also: Credit Card Limit 5,000: 7 suggestions available!

How to set the ideal credit card limit?

Even if the limit is offered by the bank or financial institution, you can take some precautions to ensure you have the appropriate credit limit.  

To do this, first of all, you must evaluate your monthly income, as knowing your net income is the first step. 

You should include in your assessment what you actually receive after taxes and other deductions. 

The second step is to analyze your expenses. To do this, map out your fixed and variable monthly expenses. 

Include all expense categories, such as housing, food, transportation, and leisure.

It is also important to establish financial priorities in this process, that is, determine what your financial priorities and goals are. 

This action may include, for example, saving, investing, or paying off debts.

Finally, always leave a margin for unexpected events in your budget. This prevents you from relying on your credit card in emergencies.

How important is it to have an adequate credit limit? 

One adequate credit limit is crucial for maintaining financial health. It helps avoid excessive debt and keeps your finances under control. 

Having a limit that is too high can lead to unnecessary spending and debt accumulation, while a limit that is too low may be insufficient in times of need. 

As a result, you may resort to other financial products with higher interest rates to meet this need. 

According to a survey by the National Confederation of Retail Managers (CNDL), 77% of Brazilians have at least one debt, with credit cards being the main culprit.

Each person has a unique financial profile, which must be considered when defining the ideal credit card limit. 

Those with a stable, high income can have a higher limit without compromising their finances, while people with variable income should be more cautious. 

Furthermore, your credit history directly influences the credit limit. Maintaining a good credit score can make it easier to obtain a suitable limit.

Read also: What is a card brand and which are the best?

Conclusion

Set olideal imitation for credit card it is an exercise in self-knowledge and financial planning. 

Don't rush into applying for a credit card with a limit that exceeds your financial means. 

With an adequate limit, you will protect your financial health, avoid unnecessary debt, and contribute to a healthy relationship with credit. 

Always remember that a credit card is a tool that must be used responsibly.