<prompt> Human: Im planning finances and if everything goes well barring any catastrophic events, I will be completely debt free by next fall. No auto loan, no credit card, no student debt. It got me wondering, if we are supposed to be paying off our entire balance monthly, what is the point of having a high credit limit in the first place? I could ask for a card with a 40k limit but if I am supposed to pay off the entire balance monthly, I likely wouldnt ever go above a balance of 2k or something... Of course, a person can get greedy or irresponsible and start spending money and rack up a huge debt on the credit card... Sorry for the somewhat scattered thoughtsAssistant: You get a big credit limit to impress other lenders.Credit Karma says I am using 2 of my 163,131 limit. Are you impressed? : And no, Ive never asked for a credit limit increase.Using multiple cards helps build a record of timely payments more quickly. Human: oh wow, how did you get your credit limit increased to that much?also, isnt having a 2 utilization considered bad? From everything I have read so far, utilization needs to be around 20-30 no more, no less or else it will look bad on you  <response>: You are really really overthinking this.Utilization has no memory. You only need to be concerned about it if youre applying for more credit. Thus all you have to do is get it low a month or two before you are looking to apply.Im also not sure where youre reading that multiple cards and low utilization are bad. Whatever source that is you need to stop reading it.The main thing you need to do for good credit is consistently make your payments on time. Thats it.For good financial health you should also pay your statements in full so you arent charged interest.All the rest of this about one card vs two or this limit vs that limit or charging 2 vs. 30 is largely worrying about nothing.Make your payments on time. Pay your statements in full. 