Credit Card Limit Calculator – Monzi Talks Credit Cards!

What is a credit card limit calculator? Why might you need to use one? Monzi personal loans available from $2,100 to $15,000 online. Apply now.

Credit cards provide you with instant, small loans. A potential good alternative to taking fast loans through a lender. But, what exactly is a credit card limit calculator? How might one be beneficial to you? Do you even need a credit card? All these questions are incredibly valid so, rather than discussing no credit check loans or loan repayments, today Monzi will discuss credit cards and credit limits. Because your credit usage and credit score are essential, and you should be fully informed.

Please note that specific ideas and products presented in this article may not be on offer by Monzi or the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances. A credit card limit calculator is a tool that helps individuals estimate the maximum credit card limit they might qualify for based on their income, expenses, and credit history.

What is a credit card limit calculator?

A credit card limit calculator works to provide you with an estimate of what your credit card limit may be. It is essential to recognise that these calculators are not always accurate. They may not align with the limit you receive from your provider. However, if you’re unsure about your credit limit, these tools are excellent for helping you gauge what you may be entitled to. Learn more about buy now pay later no credit check australia here.

It may not be that simple to locate a credit card limit calculator, as most popular banks do not offer such a tool. However, they are in existence. As are the typical calculations for a credit card limit if you cannot locate a specific calculator. However, information on how your credit card works and how to make your repayments is abundant if you ever need some help. One great source of information regarding using your credit card is the government’s MoneySmart website. Here you can read about paying off your card, lending criteria, credit products, balance transfers, cancelling a card, and the list goes on. Start your research on government sites if you are ever unsure.

What is a credit card limit?

Just because you sign up for a credit card does not mean you are automatically entitled to an endless stream of credit. For this reason, almost everyone receives a limit on credit card spending. Your credit limit is the maximum credit you can spend. Or the maximum debt that you can put yourself in – if you want to be more pessimistic. Your limit calculates on four components. Once it is given to you, displaying good money management may entitle you to a limit increase.

If you are a perfect credit card user, you may be entitled to a ‘premium’ card which comes free of a limit. However, this is relatively uncommon. If you are an average Australian on an average wage, your limit may be around the $10,000 mark.

How is a credit card limit calculated?

As said above, your limit calculates on four things. Your income, employment, credit history and debt, and the card itself. If you can locate a credit card limit calculator, you will need to enter this information online. It should then generate an approximation. However, if you need to calculate this manually, there is a method that may help you.

Keep in mind that there is no way to calculate what your limit will be. This is due to the number of factors your provider will base their decision on. However, you can base your calculations on the following:

  1. What do you earn? You will need to know your total income before you can decide on what is affordable for you.
  2. Current, recurring expenses? This covers everything you would need to pay for weekly or monthly (bills, food, rent or mortgage, transport costs).
  3. What remains after your bills? What money will remain for your non-essentials once the bills are out of the way?
  4. How much do you think you’ll need? Finally, you can vary your limit yourself in some circumstances. If you feel a credit card may be helpful but don’t necessarily need one, you may opt for a lower limit.

Once you’ve got a rough idea of your limit, you can choose a card. This can be overwhelming due to all the options on the market. However, there are numerous sites online that offer credit card comparison tools to simplify your decision and find the best credit card.

Why would you use a credit card limit calculator?

A credit card limit calculator, or estimating your limit yourself, can be helpful if you don’t like surprises. Knowing what ballpark your limit may be in means you’ll know what to request when you place your application. It will also allow you to make more straightforward decisions when choosing a card. For example, if you know that you want, a $15,000 limit, you won’t want to waste your time looking at cards with a $10,000 limit.

Knowing your limit may also help you decide whether you will use the card for specific activities, such as flights. If you do have enough to purchase airline tickets frequently, you may want to consider cards with rewards programs such as ‘frequent flyer points’. Alternatively, using one of these calculators may help you work out whether you can cover all your expenses if you are seeking a business card. Regardless, however, you can use a credit card limit calculator for whatever need you may have. These tools are accessible to anyone and can be pivotal to making the right financial decision.

Where can you find a credit card limit calculator?

Whilst it can be challenging to find a credit card limit calculator since they can only estimate, you should look online. Alternatively, try searching for an Australian credit limit estimator. These tools are typically free for anyone to use. As with most financial calculators, they will usually belong to credit card providers to entice you to sign contracts with them. However, just because you use a companies calculator does not mean you need to engage with their other services.

If you are having trouble locating a credit card limit calculator, you can form a rough idea yourself. Using the above information, work through the list and figure out what you have left after removing your expenses. Then consider what kind of limit you’d like and whether these two figures are similar. From there, if there is a card that aligns with this, speak to said card’s provider and see if they can shed some more light on your potential limit. It’s never a bad idea to contact a company directly regarding their services.

Take Monzi, for example. We are a lender-finder service for personal loans. Meaning if you have a question about our lender network or system, we’d love to hear from your directly. Don’t assume the answer when it comes to financial decisions.

Business credit card limit calculator

You can use similar information when calculating your limits for a business credit card. Consider how profitable your business is, the complete list of your business expenses, and how much of your spending you need to put on this card. Then, just as you may do with a personal card, consider speaking with your potential provider about what limit you may be able to obtain. This is often a good option for young business owners struggling to get a small business loan.

The loan criteria for new businesses can be pretty challenging, considering how often new companies can go bankrupt. However, there might be alternatives in private loans through one of the lenders in the Monzi network. This is due to private lenders typically offering more relaxed approval criteria. Please note that each of the lenders Monzi works with have varying terms and approval criteria.

What’s better? Credit card vs personal loan

There are situations where a credit card may be more suitable than a personal loan and vice versa. Rather than going through the hassle of using a credit card limit calculator and applying for an account, you could use small cash loans instead. However, this isn’t always the most convenient option. Hence, there are advantages for each option available to you:

Credit cards

  • Flexibility with your borrowing: Providing you haven’t maxed out your cards, you will always have extra cash available if needed.
  • Flexibility with your repayments: You don’t always have to repay each purchase in full when due. Provided you repay the minimum amount, you will appease your credit provider.
  • Quicker application time: Credit cards also don’t require you to go through a whole application process once you establish your account. You simply have to swipe your card at the checkout.

Personal loans

  • Lower interest rates: Personal loans, mainly secured personal loans, have much lower interest rates than a credit card with an outstanding balance.
  • No cash withdrawal charges: Money from an approved application goes directly to your debit account, meaning you won’t need to pay fees to withdraw it.
  • Fewer fees (potentially): You may only encounter an application fee and a potential monthly fee, rather than annual and account keeping fees.

If you apply using Monzi’s services, you won’t pay a cent to find a lender. We cannot speak on whether your lender will charge an application fee. However, finding non bank lenders who can help quickly and freely can be very helpful.

What are the minimum and maximum limits?

Most Australian credit cards have a minimum and maximum limit. If you are to use a credit card limit calculator, it is likely to generate a figure for the total amount. Rather than misleading you about a possible unlimited account. Regardless, you may find that across the board, the minimum is around the $2,000 mark. While there simply is no maximum in some cases, you can expect a $10,000 limit for the average person.

Suppose you feel that you need to increase your limit after you receive your account. This is possible. You may, however, need to hold this account for some time and show good habits before your provider considers this. You can usually also have your limit decreased if you feel that you are not managing your credit card well.

How will your credit card affect your credit score?

Your credit card usage can, and will, affect your credit score either positively or negatively. This will hinge on your money management skills, as with any other credit you borrow from a third party. For example, if you allow your credit card repayments to fall behind and stop being prompt with delivering what you owe, your credit score will take a hit.

On the other hand, if your credit is well managed and paid promptly and you are using your account to the fullest, it may improve your credit score. However, it is essential to know that a credit card is unnecessary to build a good credit report. If you don’t require any extra help from the bank and can show that you have good saving habits, it may be possible to get a future loan regardless. This can be extremely helpful if you believe that owning a credit card may be worse for you than not. You know yourself better than anybody else, don’t make financial decisions just because they are considered the norm.

How can you increase your credit limit?

There are two ways that you can increase your credit limit. Either you place an application for your limit to be re-examined, or your bank randomly increases the limit. For either to occur, you’ll need to show that your money management has been worthy of a higher limit.

Typically you can do this by holding the card at its current limit for some time. During this time, you show that you are prompt with your payments and that you spend wisely. Utilising the card well may earn you various rewards meaning there is a lot of incentive to using credit wisely.

Don’t be too upset if your credit provider refuses your application for an increased limit, however. This is usually to benefit you and prevent you from accidentally injuring your credit score.

Use a credit card limit calculator

How often do you repay your credit card?

Ideally, you should be looking to pay your credit card off in full, monthly. This will ensure that you are managing your money responsibly. After all, you went through all the fuss of using a credit card limit calculator and comparing cards. You might as well keep on top of your payments too.

If you struggle with clearing your debt monthly, your provider may offer you some space to breathe. They may allow you, for example, 40 days interest-free to repay. However, if you exceed this time frame, then interest may begin accumulating. See how no interest credit cards might be able to help you.

Is it bad to pay your credit card bill early?

No, paying early and regularly may help you keep on top of your spending and avoid paying interest. There is nothing wrong with having a zero balance on your card either; however, be mindful of how long you leave your credit card untouched.

This is because an unused account may be closed by your provider. Not only this, but you may be paying annual fees on an account that you aren’t using. Don’t give the banks anymore of your hard-earned money. Only open an account if you intend to get worth out of the service.

When to close a credit card account?

There are pros and cons to cancelling your credit card. Typically it is only a bad thing to close a credit card if you have multiple recent applications or struggle to make the repayments on your other accounts.

It may be a good idea to close one of your cards if you have previously defaulted on this card and have paid it off. This is as it shows you are regaining control of your finances. It could also be a good idea to get rid of a high credit limit. Cancelling a high limit account reduces the risk you could pose to a lender, thereby improving your credit score. It also means that you will be eliminating space to create extra debt if you have other repayments.

Virtual credit card

A virtual credit card is not something you will likely need a credit card limit calculator for. This is because a virtual credit card is merely a digitalised version of your existing card. Also known as ‘controlled payment numbers’ virtual credit cards are 16 digit numbers randomly generated to provide you security when online shopping.

These cards make it harder for you to be a victim of fraud when paying for goods online. You can only use this code once for a single transaction. If you want to carry on with more online shopping, you will have to generate a new code. It links to your credit account, however, it puts an extra barrier between you and criminals.

How to transfer credit card balance

A credit card balance transfer happens once you have used a credit card limit calculator and opened an account. Essentially it is when you move the amount of money you owe into a different account. This is an excellent alternative to a debt consolidation loan as it means you can move multiple debts into a single account and manage them unanimously. This can be a good option if you receive a low-interest rate on the transferred amount.

However, this interest rate will typically only last for a short period, meaning you will want to repay it before the rate goes up. Particularly if the new account’s rate is higher than that of the original account. Keep in mind that if you apply for a new card to do this. Your new credit application will be listed on your credit report, potentially lowering your score.

It may also be wise to completely move all of your outstanding credit and cancel your old card to remove the temptation to spend more. Also, check how much you can transfer as, if you can only move half, it may not be worth paying interest across multiple accounts.

Credit card comparison tool

Once you have used a credit card limit calculator, you may next want to compare the credit cards on the market. This process has become simplistic due to credit card comparison tools.

These tools allow you to view, side by side, the features of potential cards. You will typically see the purchase rate, interest rate, annual fee, balance transfer rate, and the minimum and maximum limits. Not only is this convenient, but it will also save you a lot of time. Rather than bouncing through tabs and sites, you can instead have almost all of your options lined up alongside their crucial information.

Credit card interest rates

It’s hard to say what a ‘good’ interest rate is for a credit card. However, using a comparison tool will make it easier for you to identify who has the best credit card interest rates on the market.

You can potentially compare interest rates by first choosing the provider you would like to go with. Then by looking at all the credit cards they have on offer. This will allow you to pick the card with the best features. For example, perhaps you decide that you are happy to pay slightly higher interest rates if the card offers good rewards. While interest is essential, you should consider your needs and what you can afford before making your final decision.

Credit card debt consolidation

If you have multiple credit cards with outstanding balances, you may want to – in a sense – wipe the slate clean. One way for you to do this is by taking a debt consolidation loan. Or using a personal loan as a debt consolidation loan. This means that you would borrow as much as you require to cover your credit card debts. Once you receive loan approval, you then use the loan money to repay your banks and only have one obligation to focus on.

This can be useful to many people as it makes it a lot easier to keep track of payments as they are all in one place. This also means you only have one interest rate and one term to focus on, rather than a mixed bag. This isn’t the best option for everyone, however. If you are unsure whether a debt consolidation loan would work for you, speak to a financial advisor. Ensure any financial decisions you make will better your situation before signing any contracts.

Credit card repayment calculator

So you have used a credit card limit calculator, have compared your options and have opened an account? Now you’ll want to be ready to stay on top of your repayments. A simple way to do this is by using a credit card repayment calculator before making a purchase. Such a calculator will request the following information:

  • How much you currently owe, rounded to the nearest dollar
  • Which credit card you use (if you are using your provider’s calculator)
  • What your interest rate is
  • How much you can afford to pay each month.

Once you enter this information, the calculator will tell you how many months it will take you to complete your repayments. It should also tell you the interest rate. And it may give you the option to see what happens if you pay more than the amount you originally entered.

Monzi and credit card limits

Monzi can’t offer you a credit card limit calculator. We may, however, be able to provide you with quick cash loans via our lender-finder. Our goal is to save you the hassle of finding a lender by covering that base for you.

If you’re after a personal loan of $2,100 to $15,000, we can potentially match you to a lender in as little as 60 minutes. All we need you to do is tell us how much you want to borrow and a little about yourself. From there, we’ll do our best to find you a lender who may be able to work with you and your credit score.

Ready to apply? Click the ‘apply now’ button or scroll up to our slider at the top of the page. Or, if you have a question, get in touch with our friendly team at [email protected].

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Alternatively, if you want to read more, why not check out our article on before pay? Or our information on negative interest rates?

Factor In Costs

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


16 days (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Disclaimer: Under the current legislation, all Small Amount Credit Contract loan providers don’t charge an annual interest rate. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The minimum loan term is 16 days and maximum loan term is 12 months. Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Loan amount

$2,100 - $4,600


12 months (minimum)

24 months (maximum)


47.8% Annual Percentage Rate (APR)

65.85% Comparison Rate p.a.


Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88.

The maximum interest rate for a Medium Amount Credit Contract is 47.8%. Comparison Rate 65.85% p.a. The maximum loan term is 24 months. Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.

Loan amount

$5,000 - $15,000


12 months (minimum)

24 months (maximum)


47.8% Annual Percentage Rate (APR)

47.8% Comparison Rate p.a.


Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $18,995.04.

This is an estimate only and the comparison rate based on the example information provided. Other fees, costs and charges are not included. This calculation is not an offer for credit.The maximum interest rate for a Personal Loan is 47.8%. Comparison Rate 47.8% p.a. The maximum loan term is 24 months. Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $18,995.04. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.