You Might Not Realize What Happens When You Spend More Than $10,000 on Your Credit Card

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Using your credit card regularly can be a great way to earn rewards if you’ve got the right card. But using your credit card for all of your purchases can run the risk of maxing out your credit limit or at least coming too close to it.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Americans have an average credit limit of about $29,855, according to Experian. That means if you spend more than $10,000 on your credit card, you’ll use more than 30% of your available credit. Here’s what could happen if you spend that much.Other lenders might deny your loan applicationWhen you apply for a loan, lenders look closely at how much of your available credit you’re using. They want to ensure you’re not overextending your finances because they want to know you can afford to pay them every month.Most lenders want you to use less than 30% of your available credit. So if you have more than $10,000 on your credit card balance — and have a credit limit of $29,855 — you could be denied your loan because your credit utilization is above 30%.Many factors, including your credit score and income determine your credit limit. But some credit cards are more likely than others to come with higher credit limits, which could help keep your utilization rate low. Click here to explore our list of the best high-limit credit cards.Your credit score could dropEven if you’re not applying for a loan, using too much of your available credit could still have negative effects. Specifically, it can cause your credit score to drop.Credit agencies calculate your credit score based on five primary factors, including:Your payment history (worth 35% of your score)Amounts owed (30%)Credit history (15%)New credit (10%)Credit mix (10%)As you can see, the amount you owe is the second most important factor in determining your score. If the amount you owe significantly increases and your overall utilization goes above 30%, then your score could drop.You might score some sweet rewardsOn the bright side, spending $10,000 on your credit card could earn you some lucrative rewards. Depending on the type of card you have, you could score significant travel miles or cash back.For example, let’s assume you have a cash back credit card paying 4% on purchases. Assuming that you spent $10,000 on qualifying purchases, you’d earn $400 on that amount!Cash back credit cards are the only type of card I personally use. Some have more useful perks than others. Check out our curated list of the best cash back credit cards that pay up to 5% back or more.Your payment might be declinedOn my honeymoon in St. Thomas years ago, I tried to buy groceries at a local store, but the card was declined. I didn’t realize that if my card was being used in a faraway location, rather than my usual trips down the street at Target, my credit card company would be suspicious of the purchase.I was only buying some local fruit and groceries, but your card could be denied if you try putting $10,000 on it for just one purchase, no matter what your location. While there’s no hard-and-fast amount for what your credit issuer will allow, if you don’t usually spend $10,000 at a time or have a low credit limit, you can expect the purchase to be declined.To avoid this, call your credit card company before you make a large purchase. Or even before you buy fruit on an exotic island.Putting $10,000 on your credit card will have different results depending on your credit limit and your usual spending habits. But since many of them can be damaging, it’s best to be cautious about running up your credit limit or making a large purchase on your credit card.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Using your credit card regularly can be a great way to earn rewards if you’ve got the right card. But using your credit card for all of your purchases can run the risk of maxing out your credit limit or at least coming too close to it.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Americans have an average credit limit of about $29,855, according to Experian. That means if you spend more than $10,000 on your credit card, you’ll use more than 30% of your available credit. Here’s what could happen if you spend that much.

Other lenders might deny your loan application

When you apply for a loan, lenders look closely at how much of your available credit you’re using. They want to ensure you’re not overextending your finances because they want to know you can afford to pay them every month.

Most lenders want you to use less than 30% of your available credit. So if you have more than $10,000 on your credit card balance — and have a credit limit of $29,855 — you could be denied your loan because your credit utilization is above 30%.

Many factors, including your credit score and income determine your credit limit. But some credit cards are more likely than others to come with higher credit limits, which could help keep your utilization rate low. Click here to explore our list of the best high-limit credit cards.

Your credit score could drop

Even if you’re not applying for a loan, using too much of your available credit could still have negative effects. Specifically, it can cause your credit score to drop.

Credit agencies calculate your credit score based on five primary factors, including:

Your payment history (worth 35% of your score)Amounts owed (30%)Credit history (15%)New credit (10%)Credit mix (10%)

As you can see, the amount you owe is the second most important factor in determining your score. If the amount you owe significantly increases and your overall utilization goes above 30%, then your score could drop.

You might score some sweet rewards

On the bright side, spending $10,000 on your credit card could earn you some lucrative rewards. Depending on the type of card you have, you could score significant travel miles or cash back.

For example, let’s assume you have a cash back credit card paying 4% on purchases. Assuming that you spent $10,000 on qualifying purchases, you’d earn $400 on that amount!

Cash back credit cards are the only type of card I personally use. Some have more useful perks than others. Check out our curated list of the best cash back credit cards that pay up to 5% back or more.

Your payment might be declined

On my honeymoon in St. Thomas years ago, I tried to buy groceries at a local store, but the card was declined. I didn’t realize that if my card was being used in a faraway location, rather than my usual trips down the street at Target, my credit card company would be suspicious of the purchase.

I was only buying some local fruit and groceries, but your card could be denied if you try putting $10,000 on it for just one purchase, no matter what your location. While there’s no hard-and-fast amount for what your credit issuer will allow, if you don’t usually spend $10,000 at a time or have a low credit limit, you can expect the purchase to be declined.

To avoid this, call your credit card company before you make a large purchase. Or even before you buy fruit on an exotic island.

Putting $10,000 on your credit card will have different results depending on your credit limit and your usual spending habits. But since many of them can be damaging, it’s best to be cautious about running up your credit limit or making a large purchase on your credit card.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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