💳 Credit Limit Too Low? Here’s What You Can Do in the UK (2025 Guide)

If your credit limit feels frustratingly low, you’re not alone. Many people in the UK receive a credit card with a limit that barely covers their monthly expenses or won’t allow for large purchases. A low credit limit can impact your ability to build credit, access rewards, or manage emergencies effectively.

So, why is your limit low — and what can you do about it? This guide explains everything UK consumers need to know about low credit limits, including practical solutions and examples from leading UK banks.

🔍 What Is a Credit Limit?

A credit limit is the maximum amount you’re allowed to borrow on your credit card. For example, if your credit limit is £1,000, you can spend up to that amount at any one time before needing to repay.

Your credit limit is determined by the lender based on your:

• Credit score

• Income

• Existing debts

• Spending patterns

• Account history

New customers or those with a limited or poor credit history are often given lower starting limits, typically between £200 and £1,200.

🤔 Why Is My Credit Limit So Low?

Here are the most common reasons your credit limit might be low:

1. Limited Credit History

If you’ve never had a credit card, loan, or overdraft before, lenders don’t have enough data to assess your risk. This is common for:

• Young adults

• New UK residents

• People who only used debit cards

2. Poor Credit Score

Missed payments, defaults, or County Court Judgments (CCJs) can lead to low starting limits.

You can check your score for free at:

• ClearScore

• Experian

• Credit Karma

3. Low or Unstable Income

Lenders assess affordability. If your income is low or irregular (e.g. self-employed), you may be seen as higher risk.

4. High Existing Debt

If you’re already using a large portion of your available credit (on other cards or loans), lenders may cap your new limit to avoid over-lending.

5. Introductory Caution by Lenders

Many providers, like Capital One or Vanquis, offer low initial limits but review your account regularly and may increase your limit automatically after a few months of responsible use.

📉 Why a Low Credit Limit Can Be a Problem

• High utilisation ratio: Using too much of your available limit (e.g. £400 of a £500 card) can hurt your credit score

• Can’t make large purchases: You may not be able to book travel, repair a car, or cover emergencies

• Lower rewards potential: Some cashback and reward cards are less useful with small limits

• Inconvenient payment cycle: You may need to repay mid-month to keep using the card

✅ How to Get a Higher Credit Limit in the UK

Here’s how to increase your credit limit safely and strategically:

🔹 1. Use the Card Regularly (and Responsibly)

Spend little and pay it off in full each month. Over time, lenders are more likely to increase your limit.

For example, Vanquis Bank often reviews accounts every 4 months for limit increases.

Visit Vanquis

🔹 2. Request a Credit Limit Increase

Most banks allow you to request an increase online or via the app after 3–6 months.

Examples:

• Barclaycard: Apply for an increase in your online account or app

• Aqua: Review your limit every few months, but you can also request manually

• MBNA: Apply in your online banking – decision usually within 48 hours

Be prepared to provide income updates or confirm employment.

🔹 3. Improve Your Credit Score First

Lenders are more generous with customers who have:

• A strong payment history

• Low debt-to-income ratio

• Long-standing, active accounts

🔹 4. Apply for a Second Card (Cautiously)

If your first card has a persistently low limit, applying for a second one may help. Just avoid multiple applications at once.

Consider options like:

• Tesco Bank Foundation Card – Designed for building credit

• Aqua Advance – Offers limit reviews after 4 months

• Capital One Classic – Initial limit from £200–£1,500, with auto reviews

Compare UK credit cards on MoneySuperMarket

🔹 5. Ask Why You Were Limited

Some providers will explain why you received a certain limit, especially if you were expecting more. Use this information to improve your next application.

🛑 What NOT to Do with a Low Credit Limit

• ❌ Don’t max out the card – keep usage below 30% of your limit

• ❌ Don’t apply for new cards every month – this damages your credit file

• ❌ Don’t rely on the card for essential bills – it creates dependency and potential debt

• ❌ Don’t use multiple credit cards just to boost limits – it looks risky to lenders

🏦 UK Bank Examples: Credit Limit Policies

📉 Does a Low Limit Affect Your Credit Score?

It can — but only if you’re using most of it. The credit utilisation ratio (how much of your available limit you’re using) is a major factor in your credit score.

Example:

• £200 balance on £1,000 limit = 20% utilisation (good)

• £400 balance on £500 limit = 80% utilisation (bad)

Even if you repay in full, high usage throughout the month can still impact your score if reported before payment.

💡 Extra Tips for Managing a Low Limit

• 🧾 Pay twice a month to keep your balance low

• 💡 Use the card for small recurring bills (like Netflix) and repay

• 📈 Turn on bank notifications for limit warnings

• ✅ Ask for auto-limit reviews to be enabled

• 📱 Use apps like ClearScore or Credit Karma to track changes

🧠 Final Thoughts: Don’t Be Discouraged by a Low Credit Limit

Having a low credit limit might feel restrictive, but it’s not permanent. Lenders are cautious when starting out — but if you use your card wisely, repay on time, and improve your credit profile, higher limits will come.

Remember, your credit limit is more about how you manage it than how high it is. Even with a £250 limit, you can build a strong credit history that leads to better borrowing power in the future.

✅ Summary: What to Do If Your Credit Limit Is Too Low

🔗 Useful Resources

• Barclaycard Credit Limit FAQs