Credit limit
Your credit limit is the maximum balance an issuer lets you carry on a credit card. On a secured card, the limit usually equals your refundable deposit.
Why it matters
The limit is the denominator of your credit utilization (balance divided by limit), which is about 30% of your FICO score, so a higher limit makes it easier to keep utilization low.
Example
A $300 balance on a $1,000 limit is 30% utilization; raise the limit to $2,000 with the same balance and utilization drops to 15% without spending any less. After six-plus months of on-time payments, you can ask your issuer for an increase (ask whether they can do it without a hard inquiry).
Learn more
Educational only — not financial advice. No guarantees.