How Credit Card Limits Affect Borrowing Power (Even With $0 Balance)

A common surprise: credit card limits can reduce borrowing power even if you owe nothing.

Try it:

• Borrowing Power Calculator

Why the limit matters

Many lenders assess credit cards using the limit, not the balance, because the limit represents potential future spending.

Quick wins

• Reduce unused limits
• Close unused cards
• Avoid multiple store/BNPL-style limits

FAQ

Should I close my credit card before applying?

Reducing limits or closing unused cards can increase borrowing capacity, but consider your personal situation first.