Check your credit score — then ask your credit card company to increase your limit.
A strong credit score — a three-digit number between 301 and 850 — will allow you to make big purchases later on, such as insurance, a car, or a home. Generally, you don't want your credit score to dip below 650, as potential creditors may consider you less trustworthy with their money and less deserving of the best rates.
Start by checking your credit score, which you can do as often as you want through free sites like Credit Karma, Credit.com, or Credit Sesame.
One of the biggest factors that influences your score is called your utilization rate, which measures how much of your total credit you're using. The less, the better. By that logic, if you have more credit but don't increase your spending — and that part is key — you'll have a lower utilization rate, which will have a positive affect on your credit score.
Once a year, you can request a credit limit increase. Note that your request will trigger a hard inquiry into your score, which will ding it temporarily, so try not to request your increase when you need your score immediately.
If your request is granted, don't be tempted to spend more just because you can. Stick to a low utilization rate — John Ulzheimer, credit expert at CreditSesame.com, recommends spending no more than 10% of your total credit.