How much credit limit should i use

Your credit card issuer will only report your balances once a month. If you have an upcoming loan and need your score looking its absolute best, a few weeks could make a big difference. While you could simply spend less on your credit cards by using cash, you'll miss out on the convenience and rewards of using your cards.

Luckily, the solution is simple: Make earlier payments. Most of us spend money throughout the month -- but we pay our credit cards all at once. By the time the issuer reports your balance often when your statement drops , they're reporting a full month's worth of spending. Instead, consider paying your credit card balance before you get the bill.

You could even make multiple payments during the month to keep your balances low at all times. The only instance where your credit limit can be too high is if you tend to abuse those limits.

If that's the case: Stop using your credit cards, start tracking your spending, and make a budget. Regularly maxing out your credit cards will hurt your credit score and can lead to even deeper financial trouble. As long as you're using credit responsibly, there's no such thing as having too much available credit. And since credit utilization accounts for a large percentage of your credit score, it's in your best interest to maximize your available credit, as long as you don't let it change your spending habits.

Brittney is a credit expert and card strategist whose advice has been featured by major publications and financial sites across the web. A spreadsheet and data obsessive, she believes most problems can be solved with the right research, and she specializes in translating complex topics to educate and empower readers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

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If you want to keep your scores healthy and your credit reports in good shape , you should try to use as little of your credit as possible. But the right utilization rate for you might depend on a number of factors, including the state of your credit reports in general, the number of credit accounts you use and your overall financial health.

Keep in mind that paying off your credit card balance in full could still result in a high utilization rate being reported to the three bureaus. Follow Select. Our top picks of timely offers from our partners More details.

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