Many credit experts recommend that consumers keep their outstanding credit card balances at 50% (or less) of the amount of credit available. In your case, this would be $5,000 ($10,000 x 0.5). Occasionally exceeding a 50% debt-to-outstanding credit ratio is fine as long as the balance can be brought down below 50% again quickly. For example, you might charge over your credit limit one month if you expected a bonus or tax refund the following month to pay down the credit card balance and get back below 50%. Of course, it should always be your goal to pay off your credit card balance each month and have a 0% debt-to-outstanding credit ratio.
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