How much is too much when it comes to reaching your credit limit?

I know that credit card companies don't want you to come to close to your limit when using your credit card. How much of your credit limit should you use? For example, if you have a $5,000.00 credit limit, how much of that is enough?|||You should never use over 30% of your limit which in your example would be $1,500.00.





Even better is to pay your cards off in full every month that way you never pay interest.|||Actually, you are asking three different questions here. First, the credit card companies want you to come as close to your limit as you can without going over...that increases the amount of finance charges and increases their profit. From a consumer perspective, you want to have absolutely no balance that carries from one month to another, which avoids that finance charge. From the perspective of applying for additional credit such as a mortgage, the company you are applying to would like to see something in the order of 1/3 of the limit or less, which shows them that you can handle credit responsibly. Obviously, there are exceptions (purchase of a major item such as a freezer or other appliances might push you over the 50% mark which can be explained and mitigated by not charging more) and when applying for credit, this should be mentioned.|||It isn't how much of your limit you use, it's the balances you carry. If you max out your card but pay the balance in full every month, the credit card company will probably increase your limit.





Carrying balances of more than 30% hurts your score. Pay off the balance and your score rebounds.





Instead of worrying about how much you can put on the card, worry about only charging what you can afford to pay in full every monht. Just because you have a $5K limit, doesn't mean you have to use a certain amount.|||I think one should make allowance for Interest and Other Charges when considering how much of your allowed credit is enough. If you do not, should you go over your limit even as a result of these charges, you will still be penalized (additional charges) for spending over your limit. I think 90% of your limit is just enough|||i loved economics in class and talking to most of the teachers and other people they all told me the same thing when dealing with your credit limit the most you should spend on it is about 40% so in your case $2000 an more than that and your interest will start to go up