Your credit card spending limit is the maximum amount you can spend on the card, and is determined by your credit card company. A credit limit has a bigger impact on how you use your card than you might expect. It affects everything from the purchases you make to balance transfers and even your credit score. Here’s what you need to know to make the most of your credit card spending limit: What is a credit card spending limit? A credit card spending limit is the total amount of money you can charge to yo ...

A high credit limit can help your credit score because it could lower your credit utilization ratio, or how much of your total available credit you use. Lenders typically want to see you use 30% or less of your available credit. On the other hand, having more credit could lead to increased debt because of the additional spending power. Let’s explore the pros and cons of high credit limits and see if a high-limit credit card, like a travel rewards card, makes sense for you. Pros of having a high credit l ...