Your Credit Limit Is What You Can Spend, Not What You Should Spend

Just because the credit card issuer grants you a thousand-dollar limit doesn't mean you can afford it or should use itYour credit limit is the maximum you are allowed to charge on your card, and is based on your financial background and credit history. If your balance exceeds your credit limit, you'll be assessed an extra fee each month until you pay off enough of your balance to bring it back down below the limit. To manage credit successfully, you need to make the distinction between the credit limit and the amount of credit you can afford. Just because the credit card issuer grants you a thousand-dollar limit doesn't mean you can afford it or should use it.