What’s a credit card limit?

Ever wondered why your credit card comes with a limit and what that really means for you? In a nutshell, a credit card limit is simply the maximum amount you can borrow on a card – and understanding it can help you manage your spending and keep your finances on track.

As Monzo’s mission is to make money work for everyone, we want to help you feel clear and in control when using credit. 

So, let's break it down. In this article, we'll cover:

• What a credit limit is and why it matters

• How credit limits work in practice

• How Monzo Flex credit limits are designed to help you

Credit limits explained

A credit limit is the maximum amount of money you can borrow on your credit card at any one time. When you’re approved for a card, your provider sets this limit. You can then spend up to that amount, and as you pay it back, your available credit goes back up. All credit cards have a limit, so it’s a good idea to get familiar with how they work.

How are credit limits decided?

Credit limits are based on your personal circumstances to make sure you can comfortably afford to pay back what you borrow. When you apply, lenders look at a few things, like your income, expenses and credit history. Your credit history gives a sense of how you’ve handled borrowing in the past.

Why do credit limits exist?

A credit limit is there to protect you. It helps you stick within a manageable budget and can help prevent debt from getting out of control. It’s a safety feature for you, as well as for the bank.

What happens if you go over your credit limit?

It’s helpful to think of your credit limit as a firm boundary, not a target to aim for. Staying well within your limit is a sign of healthy money management.

If you do try to spend more than your limit, several things can happen:

• Your payment will be declined. This is the most common outcome – the transaction simply won't go through.

• It could affect your credit score. Regularly getting close to or hitting your limit – or trying to go over it – can signal to lenders that you might be struggling with your finances. This can lower your credit score.

• Your limit could be lowered. In some cases, a lender might decide to reduce your credit limit if you repeatedly try to exceed it.

Credit limits are there to encourage you to make smart, balanced choices about your spending. If you're looking for ways to better manage your money, check out our budgeting tips.

Finding support if you're struggling

Even with the best-laid plans, keeping up with payments can sometimes become stressful. If you're starting to feel like your debt is getting out of control, remember that it's always okay to ask for help. In fact, talking to someone is often the best first step. Here are some organisations that offer free, confidential, and impartial advice:

• StepChange: a debt charity that can help you create a plan. You can reach them online or by phone (0800 138 1111).

• Citizens Advice: provide advice on debt, money management, and more. You can reach them online or by phone (0800 240 4420).

• National Debtline: an independent charity for debt advice. You can reach them online or by phone (0808 808 4000).

• MoneyHelper: a service offering free money guidance and debt advice. You can reach them online or by phone (0800 138 7777, or 0800 138 0555 if you’re in Wales).

How Monzo Flex credit limits work for you

Flex is a little different to a traditional credit card; it’s designed to give you more flexibility and control. You can use it to pay for things almost anywhere, then choose to pay it back later – in full, over 3 months at 0%, or in instalments for up to 24 months with interest. 

We offer eligible customers a credit limit of up to £10,000. The limit you get is based on your personal circumstances, which helps us make sure it’s the right amount for you. Over time, your limit could change based on things like your payment history with us and how long you've been a Monzo customer. 

You’ll pay zero interest on purchases of £100 or more that you pay back over 3 months. That isn’t an introductory offer – you can keep using your 0% time and time again. After that, our standard rate is 29% APR representative (variable).

Putting you in control

One of the best things about Flex is that you’re in the driver's seat. You can ask to adjust your credit limit right in the Monzo app. Want a higher limit? You can request one, and we’ll run a quick check to see if it’s affordable for you. But remember, applying for more credit can leave a mark on your credit file, whether you’re approved or not.

It’s important to check that you can afford any extra credit before you borrow, as missed payments can negatively impact your credit score.

To sum it all up

Credit card limits are a core part of responsible borrowing. They’re not there to hold you back, but to help you stay on track and in control of your money. By understanding how they work, you can use credit to your advantage. 

With Monzo Flex, we’ve made it even easier to manage your borrowing in a way that suits you. Starting limits of up to £10,000, in-app controls and flexible repayment options are all designed to fit around your life.

Ready for a better way to pay later?

You’ll need a Monzo current account to apply for Flex. Monzo current account Ts&Cs apply. UK residents & 16+ year olds only. Flex eligibility criteria and Ts&Cs apply. UK residents & 18+ years olds only. Missed payments may negatively impact credit scores. If you miss a payment, you may lose the 0% rate on existing purchases.

Representative example: 29% APR representative (variable). £1200 credit limit. 29% yearly interest (variable).

Questions? Answers.

How do I increase or decrease my Monzo Flex credit limit? 

You can request a credit limit increase or decrease directly in the Monzo app. Just head to your Flex account, scroll down to the ‘Payments settings’ and tap on ‘Credit limit’. You'll see the option to change your limit. We'll ask a few questions and let you know if you're eligible.

What’s the highest Monzo Flex limit? 

Eligible customers can get a credit limit of up to £10,000 with Monzo Flex. The actual limit you're offered will depend on your individual circumstances.

Can you go over your credit card limit? 

Generally, no. If you try to make a purchase that would take you over your credit limit, the transaction will probably be declined. It's always best to stay within your limit.

What’s a Monzo Flex money transfer? 

A Monzo Flex money transfer lets you move money from Flex into your Monzo account to cover bigger or unexpected costs – like paying someone who doesn’t take cards. There’s a 3% fee, and you can choose to repay it in full or spread the cost over instalments. Just so you know, money transfers aren’t covered by Section 75* of the Consumer Credit Act.

*Section 75 purchase protection on eligible purchases made with the Flex Credit Card.