Which helps more

[theonlyway]

My understanding was the total amount of available credit helped your score, but which helps more? 

A: Total amount of credit (Say 60k combined between 4 cards)

B: Or two cards with a combined 60k limit?

On USAA's credit check score planner. One of the boosters towards credit score is "Maximum Credit Card Limit". There is no section for total amount of credit. I believe I have 5 cards, would I be better off reducing to 2 and increasing those limits?

[RobertEG]

FICO scores your % util of your credit LIMIT(S).

FICO scoring of util of revolving credit includes the overall % util of all revolving accounts, the individ % utils of each account, and the percent of cards that carry a balance.

The number of cards is irrelevant in calculation of the overall % util, which weighs the heaviest, so it would make no difference in that most significant calculation if you had two or four cards.

However, the util of each individ card would be scored and their resutls combined to obtain the effect of individ card % utils, so a larger number of cards may dilute the effect of a high % util on a single card.  Maintaining a larger number of cards to all have a lower (preferably under 10%) util is obviously more work, with more chance of a single card having a high % util.

Additionally, having a higher number of cards gives more flexibility in the percent cards with a balance determination.

With two cards, you would always be at 0% carrying a balance, 50%, or 100%

With four cards, that extends to 0%, 25%, 50%, 75% ot 100%.

[takeshi74]

It's not really a matter of available credit but revolving utilization which falls under Amounts Owed.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

The limits on your revolvers factor into revolving utilization which is:

balance(s) / limit(s)

Individual and overall utilization matter. 

Number of cards doesn't really matter aside from the general recommendation of at least 2-3 cards are generally suggested for scoring purposes.  Number of reporting balances does play a smaller role in scoring.  That's why the general advice on optimizing revolving utilization (i.e. when applying for new credit and to eke out points) is to allow only one balance to report at 10% or less.

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@theonlyway wrote:

On USAA's credit check score planner

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Keep in mind that USAA provides VantageScore 3.0.  Do you have creditors that use that scoring model?

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@theonlyway wrote:

I believe I have 5 cards, would I be better off reducing to 2 and increasing those limits?

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Don't just assume that you can trade in cards for higher limits.  Limits are not granted that way.  At the time your credit is assessed it is compared to a creditor/products underwriting criteira and you are granted whatever your credit and income qualify for at that point in time.