Only use one credit card for a billing cycle?

[Anonymous]

Hi Everyone,

I've been following threads in this forum for a couple of months now. I applied for 2 credit cards after taking suggestions from this forum, and I'm happy using them. Now I'm planning to improve my credit score as new cards pushed my score low. I now own 3 cards in total. I'm planning to follow all basic rules to improve score. Again, I heard something new recently. Some one said me to use only one card for a billing cycle. Does that really make any difference? any suggestions or inputs on why we shld use only one card despite owning multiple offers from different cards?

[Anonymous]

For score optimization its best to let only a small balance report on one card out of three, preferably with an overall utilization between 1-9%. You can use any of your cards as often as you like throughout a billing cycle. What matters is the amount you let report to the bureaus once your statements close.

Whoever gave you that information please dont listen to them anymore.

[2b2rich]

They probably mean only let one card show a balance each month.  You can use your cards as much and just pay them off before your billing cycle closes so that they will report a zero balance.  Everyone's situation is different.  I have had the best luck it seems, when I let any amount of cards show an average of 6% utilization so have never understood the whole 'only let one card show a balance each month' deal.  Again, it is going to depend on other things in your report(s).

As new as your cards are, probably only time will help your score a lot because initially, the score models also taken into account that they are 'new' and need a few months of 'pays as agreed' also showing to see that you will be responsible with them. It will happen!

[Anonymous]

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@Anonymous wrote:

Hi Everyone,

I've been following threads in this forum for a couple of months now. I applied for 2 credit cards after taking suggestions from this forum, and I'm happy using them. Now I'm planning to improve my credit score as new cards pushed my score low. I now own 3 cards in total. I'm planning to follow all basic rules to improve score. Again, I heard something new recently. Some one said me to use only one card for a billing cycle. Does that really make any difference? any suggestions or inputs on why we shld use only one card despite owning multiple offers from different cards?

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Remember that your credit score is a snapshot of your current credit profile and has no memory. So, if you're applying for tons of new credit right now, it might make (some) sense to keep just one card with low util (under 10%) and the rest at zero. But, if I were you, I'd be less concerned with optimizing your right-now credit score and more concerned with building a consistent payment and usage history with your new credit providers. You show them, and anyone who sees your CR, that you are capable of charging to each account and diligently paying it off each month, building a consistent payment history with each creditor. Over time this will substantially improve your score, but furthermore, it will help you make inroads with all of your card providers by consistently proving to them that you are a reliable customer.

Keep in mind that the only reason your score has dropped is because of your inquiries. No matter which strategy you follow, your score will recover as those inquiries age out and as you show responsible usage of your new cards.