If your credit limit is $4,000, you should ideally spend around $40 to $400 each month, then pay off your full statement balance by the due date. This will help your credit score increase as fast as possible and allow you to avoid paying interest.
If you can’t manage to spend this little on your card, just strive to keep your spending below 30% of your credit limit. Once your credit utilization exceeds 30% of your credit limit, it starts being detrimental to your credit score.
How Much You Should Spend With a $4,000 Credit Limit
- Spending between $40 and $400 per month is best for your credit score.
- You should avoid having a balance above $1,200 when your monthly statement gets generated.
- Even if you spend $0, your credit score will still improve just by having the account open.
If you need to spend more than 30% of your credit limit in a given month, you can always pay off some or all of your balance early. The balance listed on your monthly credit card statement is generally what’s used to calculate credit utilization.
This answer was first published on 06/12/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
