Can I spend my full credit limit?

Okay, so, can you actually spend your entire credit limit? Technically, yeah, you can. I mean, the bank gave it to you, right? But here’s the thing, and this is something I learned the hard way, totally maxing out your credit cards? Huge ouch for your credit score.

Think of it like this: lenders want to see you’re responsible. If you’re using every single penny they’ve given you, it kinda screams “I might not be able to pay this back!” It’s like, imagine lending a friend money. If they immediately ask for more right after you hand it over, you’d be a bit nervous, wouldn’t you?

I remember one time, back in college, I thought, “Hey, I have this credit card, let’s treat myself!” And yeah, I treated myself alright, right up to the limit. My credit score took a nosedive. It took me ages to build it back up, let me tell you.

So, what’s the magic number? Well, the CFPB (that’s the Consumer Financial Protection Bureau, those guys that protect people like you and me from being ripped off) they actually recommend keeping your credit usage below 30% of your available credit. That’s a good rule of thumb, honestly.

So, for example, if you have a $1000 credit limit, try to keep your balance under $300. That way, you’re showing you can handle credit responsibly. Trust me, future you will thank you for it! Because a good credit score? That’s gold when you’re trying to rent an apartment, buy a car, or even just get a decent interest rate. So, be smart with those cards, okay? I know I wish I had been!