CC Usage Pattern

[justnumbers]

Hello all.

I have a question concerning credit card usage. I know from browsing and searching through these forums that I want to have 2-3 cards, with one of them reporting a 1-9% utilization. What I'm wondering is how long do you stick to only using one card? Indefinately, or should I switch to one of the other cards after 3, 6 months, a year, etc? Do you ever switch your main/reporting card?

Here are the cards I have:

Shell FCU: $500

BoA secured: $1,000

Capital One secured: $500

The Shell is a regular CC, but the BoA has a higher CL and will eventually become unsecured, so I'm thinking I should use that as my main card. BoA is also supposedly sending me a rewards CC to replace what I have (asked for it when I upped the limit from 500 to 1000). What say ye? Thanks!

[bdhu2001]

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@justnumbers wrote:

Hello all.

I have a question concerning credit card usage. I know from browsing and searching through these forums that I want to have 2-3 cards, with one of them reporting a 1-9% utilization. What I'm wondering is how long do you stick to only using one card? Indefinately, or should I switch to one of the other cards after 3, 6 months, a year, etc? Do you ever switch your main/reporting card?

Here are the cards I have:

Shell FCU: $500

BoA secured: $1,000

Capital One secured: $500

The Shell is a regular CC, but the BoA has a higher CL and will eventually become unsecured, so I'm thinking I should use that as my main card. BoA is also supposedly sending me a rewards CC to replace what I have (asked for it when I upped the limit from 500 to 1000). What say ye? Thanks!

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Everybody has different systems.  I tend to use the same card, because I don't like spreading my rewards (it takes more time to gain rewards if you're spreading them over cards). Some cycle their cards to keep them all current, by using one card for one month, and a different card the following month.  Always paying in full so only one balance is reporting. In your case, be careful on the lower CL cards so that you're staying below 10% utilization on that card.

Utilization is counter per card and overall.  When you have more history, it won't mater as much. But in the begining, it maters a lot, because you haven't established a pattern.

[vygotsky]

That 1%-9% is IMO for people seeking more credit soon, or wanting to buy a house or car in the near futre. If you want to keep your score up you can, as you said have 1-2 cards reporting but not all at the same time. Also if you have no other debt you can do 10-30% util which is more realistic at these low limits with out any damage to your score. 

[coldnmn]

You can use them all. Just know when the statements close pay them a few days ahead so it has time to finalize payment. Then only have one report a balance. As soon as the statement closes use them again until a few days before closing and pay them again. Just decide the one you want to report a balance when statement closes.

[justnumbers]

Thank you for the helpful replies. My goal is to get a home loan in a year or less.

As far as actually using the CC's, it is strictly for building up credit, I will only use one of them when I need to for the fico scoring. Bare minimum.

I prefer sticking with cash/debit