Westpac's page on Credit limits says that there's minimum credit limits for its cards. For example, the minimum for Platinum credit cards is A$6000 (just under US$5000).

I can understand there being maximum limits (minimising their risk to non-repayment), but why are there minimum limits?


I believe it's just to limit the less well-off from acquiring one. If your credit history and income do not support a $15,000 credit limit, then don't even think about applying for an Altitude Black card. If they do, then don't bother with a student card.

It's primarily about market segmentation by wealth or income.


They have a minimum to discourage applications for that particular card. Every application costs them money because they have to pay the credit agencies to pull the applicant's credit history. So one way they save money and reduce their cost of business is to discourage people from applying if they're not creditworthy enough for that product.

Credit card companies tailor their products into different income/credit brackets. Those who have less creditworthiness would be better suited for a different product than what you're referring, similar to those with greater creditworthiness.


It discourages people from obtaining a high-limit card simply to show off, because the bank's forcing them to use it or lose it.

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