You should spend $60 or less on a $200 credit card before paying the bill. If you have a $200 credit limit, keeping your balance below $60 will ensure a credit utilization ratio below 30%, which will help you build good credit when paired with on-time monthly payments.
Credit utilization is an important ingredient in your credit score. If you use too much of the credit limit on your card, your credit score will likely go down.
Tips for Spending with a $200 Credit Card Limit
- You should aim for credit utilization of 30% or less. In other words, your statement balance should amount to no more than 30% of your card’s credit limit. If you can manage it, 1%-10% utilization may provide even better results.
- If you keep your monthly spending below $60 on a $200 credit card limit, your credit score will improve over time if you pay your credit card bills by the due date.
- Credit utilization calculations use your statement balance. If you spend more than $60 during a billing period, consider making a payment before your statement closing date to keep your statement balance below $60.
If you feel you don’t have enough credit available to make purchases, you have a few options aside from waiting for your issuer to increase your limit. You can usually request a credit limit increase for an unsecured card, or increase your deposit on a secured card account. You can also consider opening another credit card account to increase your spending power.
This answer was first published on 03/20/23. 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.
