Respecting Lower Limit Credit Cards is Crucial in Building Credit

credit building the credit fighter Sep 08, 2023

 What's going on everyone? It's Steven Rodriguez, The Credit Fighter, Credit Analyst at Got Credit? When you’re in the process of building or rebuilding your credit, it’s essential to recognize a fundamental truth: you won't initially qualify for high credit limits. Establishing a positive rapport with creditors takes time and patience. Therefore, it's advisable to begin with smaller credit limits and gradually work your way up to your desired level of creditworthiness. Today, I'll walk you through the importance of starting small on your credit journey.

Why Start with Smaller Credit Limits?

  1. Credit History Building: When you're new to the credit game or recovering from past financial setbacks, it's essential to demonstrate responsible credit usage. Starting with smaller limits allows you to establish a positive payment history without taking on too much debt too quickly.

  2. Reduced Risk: Smaller credit limits mean you have less credit available to use. This can act as a safety net, reducing the risk of overspending and accruing unmanageable debt.

  3. Credit Learning Curve: Building credit is a learning process. By starting with modest credit limits, you can get accustomed to managing credit effectively, making timely payments, and avoiding common credit pitfalls.

How to Begin Building Credit with Small Limits:

  1. Secured Credit Cards: Consider applying for a secured credit card. These cards require a deposit as collateral, making them accessible to individuals with limited or damaged credit histories. Start with a deposit that you're comfortable with, which will become your credit limit.

  2. Retail Store Credit Cards: Many retail stores offer credit cards with lower credit limits. These cards can be easier to qualify for, and they often come with perks like discounts or rewards.

  3. Credit Builder Loans: Some financial institutions offer credit builder loans designed to help you establish or improve your credit. These loans typically have small balances and manageable monthly payments.

  4. Authorized User: If you have a trusted friend or family member with a healthy credit history, ask if they'd be willing to add you as an authorized user on their credit card. This can provide a positive credit boost.

Tips for Success:

  1. Pay on Time: Regardless of the credit limit, always make your payments on time. Timely payments are a crucial factor in building a positive credit history.

  2. Monitor Your Credit: Keep a close eye on your credit report and score. You can use free credit monitoring tools to track your progress and address any inaccuracies.

  3. Avoid Maxing Out: Even with a small credit limit, aim to keep your credit utilization ratio (credit used divided by credit available) low, ideally below 30%.

  4. Gradually Increase Limits: As your credit improves, consider requesting credit limit increases on your existing accounts or applying for new credit cards with higher limits.

To apply for lower limit credit cards, visit

Check out a video we made on YouTube talking about How to Build Credit From Scratch.


In Conclusion

Building or rebuilding credit is a journey that requires patience and discipline. Starting with smaller credit limits is a prudent strategy that allows you to build a strong credit foundation. Remember, the goal is not just to qualify for higher credit limits but to become a responsible and creditworthy borrower. So, take small steps now, and with time and diligence, you'll be well on your way to achieving your credit goals. Keep fighting the good fight, and remember, I'm here to help you every step of the way.

Check out my Instagram post below talking about lower limit credit cards.



View this post on Instagram

A post shared by Got Credit? (@gotcredit)


For more insightful tips and tricks on improving your credit score, consider subscribing to the Got Credit? YouTube channel. -->

If you're looking for professional assistance to fix your credit in 2023, visit to explore their services.




Want Helpful Finance Tips Every Week?

Lorem ipsum dolor sit amet, metus at rhoncus dapibus, habitasse vitae cubilia.