Changing the limit on your credit card

Most credit cards have a minimum and a maximum credit limit. As you will read below, the minimum limit depends on your card type. The maximum limit depends on the amount you apply for (and the bank’s comfort that you will be able to repay that amount). But there might be times when you need to change your limit.

You can reduce your limit immediately

If your credit card limit is higher than you want or need, you can pick a lower limit and we’ll usually be able to shift you onto that new limit straight away.

The quickest way to do this is in NAB Internet Banking. Open the Apply now menu and select Credit card credit limit and you can instantly reduce your limit. You can also call us or see us in any NAB branch.

When you choose a new credit limit, keep in mind that you can’t apply to raise your limit again for six months (see below).

There’s only so low you can go

There are only two things that could stop you from lowering your credit card limit:

1. You can’t go lower than your balance

You can’t set a limit that’s lower than whatever your balance is. (Check your current balance with NAB Internet Banking or NAB Telephone Banking.) So if your balance is $2,000 and you try to reduce your limit to $1,500, we won’t let you. $2,000 would be the lowest limit you could go to.

We wouldn’t allow you to do this because you’d suddenly owe more than your limit.

If you can make a payment to reduce your balance, you can give yourself more room to bring your limit down. You might reduce some now and then reduce it more again in a couple of months when you’ve lowered your balance more. If your credit card debt has got away from you, reducing your balance as you pay it off could be a good way to help get your spending back under control.

2. Each type of credit card has a ‘minimum credit limit’

Minimum credit card limits start at $500 and go up from there depending on the card type (eg Platinum cards have a higher minimum credit limit).

If you want to go below the limit for your card type (unless your minimum is already $500), you can request to change your type of card. Just remember that if you do, you may lose your platinum or gold benefits like complimentary insurances. You’ll usually still keep any rewards points showing on your statement, but it is worth checking.

Our blog post Important questions to ask when you’re choosing a credit card can help you make the right decision.

Need to increase your limit? That’s a credit application

Shifting your credit card’s credit limit up can take longer than bringing it down. That’s because you’re requesting more credit from us, and we have to use the same credit assessment process as we would if you were applying for a new card.

If you apply through NAB Internet Banking, it could take up to a few days. If you request a higher limit over the phone, some changes can be made straight away.

So, if there’s a one-day furniture sale coming up and you’re hoping to boost your credit limit so you can grab some bargains, give yourself enough time to make sure your limit can be increased.

Increases can only be made again after six months

If you want to change your card’s credit limit up or down, try and think about your budget for the next half-year. As long as you’re not trying to go below the card’s minimum limit or below your balance, you can always make your limit lower.

But once you change your limit, you can’t increase it for the next six months. After that, you can apply to change it again.

Read how you can Change your credit card to suit your needs.

Did you find this article helpful?

If there’s anything else you’d like to know, leave us a comment below and we’ll get back to you as soon as we can.

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