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Frequent Contributor
Slab
Posts: 283
Registered: ‎12-16-2011
0

Should I ever let more than 1 card report a balance?

 I have 7 cards with a combined availability of over 30k and maintain a 1 or 2% utilization on just one card. I never let 2 cards report a balance. My question is: Does it affect  ones credit scores if I maintain less than 10% utilization but allow 2 cards report a balance. I guess another way to pose the question: Is it okay to let more cards report a balance if a person has a lot of cards. An example: 4 cards, with 1 reporting a balance, 8 cards with 2 reporting a balance, 12 cards with 3 reporting a balance and so on? Keeping in mind to never let the total utilization exceed 10%.

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Valued Contributor
red259
Posts: 2,170
Registered: ‎06-05-2013
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Re: Should I ever let more than 1 card report a balance?

[ Edited ]

I'm not an expert, but from my reading in the forums it seems like the general advice is that you should only have one card reporting a balance. Somewhere I read even if its two cards reporting a balance with great utilization over all you take a hit. Not sure if the hit is less with the more accounts you have.


Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 730 6/27/14
Goal Score: 800 In garden until 1/2015
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Senior Contributor
myjourney
Posts: 26,659
Registered: ‎02-07-2013
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Re: Should I ever let more than 1 card report a balance?


Slab wrote:

 I have 7 cards with a combined availability of over 30k and maintain a 1 or 2% utilization on just one card. I never let 2 cards report a balance. My question is: Does it affect  ones credit scores if I maintain less than 10% utilization but allow 2 cards report a balance. I guess another way to pose the question: Is it okay to let more cards report a balance if a person has a lot of cards. An example: 4 cards, with 1 reporting a balance, 8 cards with 2 reporting a balance, 12 cards with 3 reporting a balance and so on? Keeping in mind to never let the total utilization exceed 10%.


For max scoring purposes the rule is 1 card 1-9% but if you don't plan on applying for any cards it doesn't matter if it's 12 cards 1-9% UTL

hope this helps

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/13


Frequent Contributor
NonSufficientFunds
Posts: 332
Registered: ‎04-09-2013
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Re: Should I ever let more than 1 card report a balance?

You have nothing to worry about - There is nothing wrong with having small balances across a few cards.

 

Credit grantors will decline for "too many accounts showing a balance" only when the majority of your cards are utilized over 10%.

 

 

Regular Contributor
goosedog
Posts: 327
Registered: ‎05-28-2013
0

Re: Should I ever let more than 1 card report a balance?

I am at a 19% UTIL right now. i have paid it down from 29% and seen an increase on my report, but thats with 4 cards reporting. Try letting 3 or 4 cards report and see if the score goes up or down.

Valued Contributor
thom02099
Posts: 1,350
Registered: ‎08-30-2011
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Re: Should I ever let more than 1 card report a balance?


Slab wrote:

 I have 7 cards with a combined availability of over 30k and maintain a 1 or 2% utilization on just one card. I never let 2 cards report a balance. My question is: Does it affect  ones credit scores if I maintain less than 10% utilization but allow 2 cards report a balance. I guess another way to pose the question: Is it okay to let more cards report a balance if a person has a lot of cards. An example: 4 cards, with 1 reporting a balance, 8 cards with 2 reporting a balance, 12 cards with 3 reporting a balance and so on? Keeping in mind to never let the total utilization exceed 10%.


General advice is to minimize (or optimize) your util by keeping it to <9%, for score purposes; to maximize your score.  However, if you're not applying for credit and need a max score, does this really matter?  In my opinion, no.  I currently have multiple cards reporting a balance but my total util is ~5% and no card is over 20% on util (took advantage of some BT a while back).  Scores have hovered in the upper 700s-low 800s.  Depends on what you want to accomplish.

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EX = 799 EQ = 812 TU = 811 - 11/2014
Regular Contributor
icloud2525
Posts: 199
Registered: ‎10-12-2012
0

Re: Should I ever let more than 1 card report a balance?

The general rule doesn't work for me.  I've played around with 1-4 cards reporting, most significant gain or loss was going from 1 card reporting to 4 reporting, saw a 9 point increase. So who knows anymore. Util under 10% in all scenarios. 

Amex BCP $17,400, Amex Platinum NPSL, Virgin Atlantic World Elite MC $10,500, Chase Sapphire Preferred $5000, Barclay Arrival World Elite MC $5000, Citi Hilton Visa Sig., $8800, Citi TY Preferred $7900, Citi Diamond Preferred $7400, Citi Dividend $5900, US Bank Flexperks Visa Sig, $5000 Discover IT $6000, Chase Freedom $3500, Amex Hilton Honors $6000 Cap One Cash $2500,-- EQ FICO 768, EX FICO 755
Frequent Contributor
Slab
Posts: 283
Registered: ‎12-16-2011
0

Re: Should I ever let more than 1 card report a balance?

Thanks for all of the great information. I think I will let 2 report just to see the effects. I am gardening right now so, nothing at stake and might be more informed by the experience.

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Super Contributor
longtimelurker
Posts: 8,160
Registered: ‎04-22-2013
0

Re: Should I ever let more than 1 card report a balance?


Slab wrote:

Thanks for all of the great information. I think I will let 2 report just to see the effects. I am gardening right now so, nothing at stake and might be more informed by the experience.


Just remember some other (small) things happen as well as you experiment, your AAoA increases by one month, time since latest new account and age of inquiries all increase as well.   So small changes (such as the 9 points) can be at least in part  explained by such things.

 

 

Mega Contributor
LS2982
Posts: 15,436
Registered: ‎04-09-2011
0

Re: Should I ever let more than 1 card report a balance?

If your not applying for new credit it does not matter how many cards have balances.

Just make sure you watch interest on the balances.



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