With any credit card, there's typically a limit to how much you can spend. And experts say choosing the right limit can play an important role in maintaining good credit health.
Set based on factors like your income, credit history and ability to repay, your credit limit is the maximum amount of money you can borrow on a credit card or account.
"Generally speaking, more credit is better, as long as you don't use it as a crutch to overspend and take on too much debt," says Ted Rossman, a senior industry analyst at Bankrate who focuses on the credit industry.
Experts often recommend seeking out a limit that's well above how much you'll spend in a month to maximize your credit score. Your "ideal" credit limit will depend on your personal spending habits and preferences, Rossman says.
Too keep your credit score high, it's best to use only 10% to 30% of your available credit and pay your statements off in full every month, says Dean Tsantes, a certified financial planner and financial advisor at VLP Financial Advisors in Vienna, Virginia.
