Do credit cards have a credit limit?

All credit cards have a credit limit, which sets the maximum amount you can borrow on the card. Find out how credit card limits are calculated and whether you can change it. When you apply for a credit card, you will be given a credit limit. This amount is the most you can spend on your card, but you shouldn’t see it as a spending target.

What does a credit limit mean?

When you open a credit card account, a credit limit is set – this is the maximum amount of money you can owe at any one time on that card. It may be changed depending on how well you manage the card. What does it mean to have a credit limit?

How much credit card should I use a month?

So, for a healthy credit score, try to use no more than 25% of your credit limit each month. You can do this by spending less on your card, or getting a higher limit. For example, if you shifted a balance of £1000 from a card with a limit of £2000, to a new card with a £4000 limit, the amount you’re using would change from 50% of your limit to 25%.