16+ Unique Ways How Much Of My Credit Limit Should I Use. Cpa and tax strategist at emparion, said the answer depends on the credit card user. How much of your credit card limit should you use?. Your credit utilization rate, the amount of credit you use against your credit limit, is an important metric. How much of my credit limit should i use.
Staying under 10% is even better. So, if you have a $900 limit on one credit card and spend. Your credit utilization ratio, the amount of credit you use compared with your credit limit, is an important measure of this.
So if at the end of the month, you owe $400 on a credit card with a $5,000 limit and $1,000 on a card that has a $15,000 limit, your total credit utilization is 7 percent.
In this scenario, your credit utilization ratio would be 50% because you’re using half of your available credit limit. To calculate this rate, take the current amount you owe, divide it by your credit limit and multiply by 100. For example, if you have a credit limit of $2,000 and a balance of $500, your credit utilization ratio would be 25% ($500/$2,000);
Exceeding That Level Will Have Significantly Negative Impact On Credit.
For example, if your credit card has a $200 limit, maintaining your balance below $60 is a good goal to achieve.