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Story summary
- Higher credit limits can benefit your credit score if you avoid overspending.
- Financial analysts recommend using only 10% to 30% of your available credit.
- For example, spending $5,000 monthly with a $50,000 limit results in about 10% utilization.
- If you view your credit limit as a spending target, a lower limit may help prevent overspending.
- Making extra payments can keep your credit utilization low, even with a smaller limit.
