Credit Cards Center Credit cards from our partners
Reply
Frequent Contributor
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
Senior Contributor
Posts: 5,482
Registered: ‎06-05-2013
0

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 790 7/24/16, Last App 7/5/16
Goal Score: 800 In garden until undecided
Community Leader
Senior Contributor
Posts: 30,824
Registered: ‎02-07-2013
0

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

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Frequent Contributor
Posts: 332
Registered: ‎04-09-2013
0

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
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
Posts: 1,578
Registered: ‎08-30-2011
0

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.

EX = 828 EQ = 846 TU = 833 as of 02/2016
Retired and Retiring Cards!
Frequent Contributor
Posts: 250
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. 

Chase Sapphire Reserve $32.5K, Amex BCP $20K, Amex PRG NPSL, Amex Hilton $12,000, Discover It $13,000, Citi Hilton $16,200, Citi TYP $14,400, US Bank Flexperks Visa Sig $12,000, Virgin Atlantic World Elite MC $11,100, Fidelity Visa Sig $6000, Barclay Arrival World Elite MC $7500, Barclay Apple Rewards $5500, Chase Freedom $5000, Cap One Cash $2500,-- EQ FICO 768, EX FICO 777, TU FICO 781
Frequent Contributor
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
Posts: 13,645
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
Posts: 15,453
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.



EQ FICO 548 3/3/16

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.