Credit cards are ubiquitous, and with modern technology allowing the use of them without even having to swipe the plastic, usage and the debt that accompany it have soared. Right now, the average American owes approximately $8,000 worth of credit card debt. Factor in the average credit card rate at just under 23%, a record high, and it's easy to understand why so many adults are in debt right now. Additionally, with compound interest, a seemingly manageable debt load can quickly become insurmountable, even if approached with the right debt techniques.

One way to avoid this increasingly common scenario is by building healthy credit borrowing habits before the debt becomes too much to handle. Credit limits, after all, should be approached strategically, and cardholders should do what they can to avoid maxing out their line. That starts with knowing how much to spend and how much to leave available for future use or emergencies. For example, how much should you spend if your credit limit is $1,000? That's what we'll answer below.

Struggling with high-rate credit card debt? .

How much should I spend if my credit limit is $1,000?

To start, just because you have a credit limit of $1,000 (or more), doesn't necessarily mean you "should" spend all of it or even a portion of it. The amount of credit used should be the amount of credit you can afford to pay in full each month, or very close to it. So if you can comfortably afford to use and pay back $500 each month of a $1,000 credit card line, then feel free to do so. But you shouldn't feel obligated to use a credit card if you don't have the financial means to pay off what you borrow. 

That said, most experts recommend limiting your credit utilization ratio (the percentage of credit that you're currently using) to just 30% of your credit limit. So, in this case, if your limit is $1,000, you shouldn't spend more than $300. But, as noted, if that $300 is too much to pay in full each month, then you likely should spend even less.

But why the 30% threshold, specifically? By keeping at least 70% of your limit available, you'll keep your ratio relatively low and, because this threshold is evaluated when adjusting your credit score, you'll wind up keeping your score relatively high as a result. Lenders will often look at your ratio for an indication of your health (and risk) as a borrower. If you're overborrowing, then you're considered riskier. That will lead to higher rates on credit cards, personal loans, mortgages and more. Conversely, if you're at or below that 30% mark, then you'll typically be considered a safer borrower and you'll tend to be offered average or below-average rates on borrowing products.

So, in this case, you should try to spend as little as possible. But if you do want to use your credit card to accumulate points or rewards, limit your spending to $300 of your $1,000 limit or 30% of whatever your credit limit currently is. Spending more than that could not only hurt your credit score and profile, but it could also quickly lead to a credit card debt load that you can't manage independently.

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The bottom line

A credit card can be a powerful tool that can lead to points, financial rewards and incentives while also building your credit score and health for the long-term. But it will need to be used properly to achieve those goals, and that starts with understanding how much of your existing credit card limit you should use. For a $1,000 limit, that means no more than $300 but that dollar figure will vary significantly depending on your credit limit. Instead, keep the 30% threshold in mind no matter how much a credit card company ultimately offers you. By doing so, you'll keep your debt load manageable, your credit score elevated and your overall credit health intact.