John Miller, Credit Cards Moderator
@john_miller
You should spend on your credit card in a month only what you can comfortably afford to pay back in full before the due date. This practice allows you to maximize the benefits of your credit card rewards and perks without incurring any interest charges. It's also worth mentioning that the balance you carry on your card from month to month should not exceed 30% of your credit limit.
A 30% credit utilization ratio is considered good because it shows you're not overly reliant on credit and can manage your debts responsibly. Keeping your utilization ratio low can help improve your credit score and make you a more attractive borrower to lenders. The best credit utilization is 1% - 9%, though. Using this amount of your credit will help your score improve fastest, assuming that you make all your payments on time.
You can learn more about how much you should spend on your credit card by referring to WalletHub’s guide on credit utilization.
People also ask
How much of a $500 credit card should you use?
You should use less than 30% of a $500 credit card limit each month in order to avoid damage to your credit score. Having a balance of $150 or less when your monthly statement closes will show that you are responsible about keeping your credit utilization low.
If you want to go beyond just avoiding credit score damage and instead improve your credit score as quickly as possible, the best way to do that is...
read full answer by Chip Lupo, Credit Card WriterHow much should I pay on my credit card each month?
You should pay off the full statement balance on your credit card each month to avoid interest. At the very least, you need to make your minimum payment by the due date to avoid late fees, penalty interest rates and credit score damage. This amount is usually around $20 to $35, or 1% to 3% of your statement balance, whichever is greater.
Paying only the minimum mostly covers interest and won’t do much to lower your balance....
read full answer by Theresa Chalfant, WriterHow much of a $5,000 credit card should you use?
You should use less than 30% of a $5,000 credit card limit each month in order to avoid damage to your credit score. Having a balance of $1,500 or less when your monthly statement closes will show that you are responsible about keeping your credit utilization low.
If you want to go beyond just avoiding credit score damage and instead improve your credit score as quickly as possible, the best way to do that is...
read full answer by Chip Lupo, Credit Card WriterDid we answer your question?
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