cancel
Showing results for 
Search instead for 
Did you mean: 

Smart way to use multiple credit cards

tag
Anonymous
Not applicable

Smart way to use multiple credit cards

Guys, I have been reading that you should atleast have one card reporting a balance and the other cards, should be paid off in full.

 

Is this correct?

 

Thanks

Message 1 of 5
4 REPLIES 4
Luscher
Valued Contributor

Re: Smart way to use multiple credit cards

yes 1 card with a utility of 1-9% and the rest paid off for maximum scoring. But this isn't always necessary only when you are planning to apply for something
CHASE FREEDOM | AMEX BCE | | BOFA REWARDS | CITI TYP | Quicksilver | DISCOVER IT | Sallie Mae | CHASE CSP
--------$32,000-------------$30,000-----------$30,000-----------$30,000-----$13,000---------$18,200----------$15,000---------$6,500----

FICO - TU: 780 EX: 784 EQ: 781
Message 2 of 5
Anonymous
Not applicable

Re: Smart way to use multiple credit cards

Makes sense, but do the other cards need to really be paid in full, or can they report a small balance too?

 

Thanks

Message 3 of 5
BootStraps
Established Contributor

Re: Smart way to use multiple credit cards

The 'one card balance' is for optimizing your credit score.

 

The more cards that have balances, the more likely it is to affect your score.




Starting Score: All Under 590 (8/2011)
Current Score: Ex: 676 Eq: 681 Tu: 683
Goal Score: Ex: 725 Eq: 725 Tu: 725

Take the myFICO Fitness Challenge
Back in the Garden 4/22/16 Smiley Happy
Message 4 of 5
takeshi74
Senior Contributor

Re: Smart way to use multiple credit cards


@Anonymous wrote:

Makes sense, but do the other cards need to really be paid in full, or can they report a small balance too?


Here's the entire recommendation (emphasis added):

 

For optimal scoring have only one card report with a balance at 10% or less.

 

It's not a matter of "should".  I personally don't bother with this since most of my cards report with balances and my scores are right at 800.  If I was looking to squeeze out some more points I might consider it.  You need to determine what works for you and go with it.  You can certainly have more than one balance reporting but you'd need to determine the impact to your score and whether or not it's worth it to you to manage the number of reported balances.

 

Also keep in mind that "paid in full" doesn't automatically mean "no balance reporting".  If you pay after the date that the card reports then a balance is still reported.  Most cards report on statement date and then the due date comes along after the grace period.  For such cards if you're only paying by the due date then you have balances reporting.

Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.