With Great Charging Power Comes Great Credit Responsibility — Here’s How to Keep it In Check

When you stop to think about it, being able to borrow massive sums of money with a mere swipe or a click is a superpower. The larger your credit card’s limit, the greater your strength, and the more trouble you can get into. 

For example, I have a few credit cards. One has a $15,000 credit limit, another has a $20,000 limit, and the last is a retail card with a $5,000 limit. I can charge $40,000 immediately. No questions asked, no guardrails.

I’m right about where most Americans are, too. According to Experian, the average number of credit cards in the U.S. per person is 3.7, with an average combined limit of around $32,000.

Using these accounts the right way is important. After all, with great power comes equally great responsibility. 

Because the new year has just started, it’s the perfect time to understand how much borrowing capacity you have, then figure out how you will use it for good. 

Have you already used up some or all of your credit line? If so, you have plenty of company. In 2025, the Federal Reserve reported that roughly half of all credit card holders carry a monthly balance.

However, if you revolve debt instead of paying the bill off when it comes due, your charging power is weakened by the amount you owe. 

Calculate how much credit you have available by subtracting the debt on each card from its credit limit.

If you have a $10,000 limit and you owe $8,000, you can only charge another $2,000.

Also, add the total of all your credit lines and subtract your total credit card debt.

If you can charge $30,000 and owe $10,000 in total, you have $20,000 available.

This credit utilization ratio, both per card and in aggregate, is one of the main factors used to determine your credit scores. This is usually expressed as a percentage, and here’s an example for someone who has three credit cards and a $10,000 overall credit limit:

The less you owe compared to the amount you can borrow, the better for your scores.

Using your cards regularly but paying the debt off in full (or carrying over a very small balance) shows you charge responsibly. Instead of leaning on the credit lines to afford your lifestyle, you use the cards as payment tools. In other words, for good.

To give yourself 100% charging power, pay down any existing credit card debt. 

Here is my best, three-step strategy:

1. Make the first payment the biggest

It can be disheartening to see slow progress, so find ways to make a major initial dent. Maybe you have a cash back card and have rewards you can use for a statement credit. Or you upgraded your tablet and have one in the closet you no longer use. 

Oh, and there’s a bicycle in your garage that you haven’t ridden in years, plus some jewelry you inherited that’s definitely not your style and has no sentimental value. If you sell all of these and apply the proceeds, you can make a big difference.

2. Suspend charging

You can’t get out of debt if you continue to add to it. Use your debit card attached to your checking account as you’re driving this liability down. 

After your balances are at zero, you can charge with them again — but enroll in automatic bill pay so you don’t carry over debt.

3. Determine a fixed payment

Review your budget and decide how much you can send to the credit card companies. Can you do $250 for four months, or $500 for two months? Whatever that figure is, be dedicated and send it until the balance is at zero.

Another excellent method is to transfer a balance to a credit card with a 0% introductory APR offer. You’ll pay a fee (usually 2% to 4% of the amount you shift over) but will have at least 12 months to pay off the debt with no interest added. 

You don’t want to have too much or too little charging power. 

Add up the amount you charge in a typical month. For example, maybe you always charge your gym membership, streaming services, groceries, gas, and outside meals to the cards for a combined average spend of $1,000.

You don’t want to hit your credit limits, though, and you may need a lot more available credit if a major expense comes up. That could be anything from a vacation to major repairs for your car. 

Yes, these are costs that should come from savings, but using a credit card can be best for protecting yourself.

Your credit card limits should be high enough to easily cover your regular and extra expenses without jeopardizing your utilization ratio in case you want to pay it off over time.

Credit card limits should be high enough to easily cover your regular and extra expenses without jeopardizing your utilization ratio in case you do want to pay incrementally. If you carry over $7,500 worth of credit card debt, a $25,000 credit line can help keep your ratio in the safe zone.

For this reason, a few cards with varying limits can put you in a safe position. If you need another card in your portfolio, look around now. 

I know managing credit cards perfectly can be a challenge. Even I can overdo it from time to time and then have to take swift action to keep the bill from turning into a problem. 

With average APRs in the mid 20% (and interest rates on retail cards over 30%), hanging on to debt is just too expensive to justify. 

Why not make 2026 the year you find and flex your power over plastic?