Through April 20, 2021, Experian, TransUnion and Equifax will offer all U.S. consumers free weekly credit reports through AnnualCreditReport.com to help you protect your financial health during the sudden and unprecedented hardship caused by COVID-19.
Lenders weigh a variety of factors when determining what credit limit to offer a new borrower. Your credit score can play an important role, but it’s far from the only thing that matters. When you open an account, creditors want reassurance that you’ll be able to make good on your payments, which is where your earnings come in. Having a steady stream of reliable income can help show lenders that you’re an appealing borrower.
Even after you’re approved, creditors may continue to inquire about your earnings to make sure your borrowing power is still appropriate. Your credit limit can rise and fall based on many factors, including broad economic conditions—and your income is a big part of what shapes it. Read on for a closer look at how your income can affect your credit limit.