The credit limit on a card serves a few important purposes. It makes sure that your card is large enough to be practically use able but at the same time not too large to be overwhelming.

Benefits of a Large Credit Limit

1. It allows you the flexibility to make purchases without worrying [too much that is] if you have gone over the credit limit

2. The larger the limit, the easier it is to rack up points/rewards

Benefits of a Smaller Credit Limit

1. A Smaller limit helps to stop irresponsible spending

2. In the event that someone steals your credit card information, the smaller the limit the better.

So there you go a finding an effective credit limit is an important part of finding a good credit card. If you have any comments don’t be afraid to post them below.