0 balance versus small balance to improve payment history?

[tradinglife]

Have 2 cards, one w/ a $400 limit (0 balance) one with a $1,000 limit (800 balance), both of these cards are about 1 year old. From what I've seen on here I should pay both off, not use smaller card, and charge and pay off about 5% a month on larger card. Or would charging and paying a small balance on each card every month show a longer history of on time payments? If you are not using a card with a o balance, your are not increasing your payment history are you? Or is it better to not use smaller card at all? Thanks for the help!

[user5387]

You can use both cards to your heart's content, and doing so is good for CLIs and so on.

However, you probably want to control the reported balances, which means paying off or reducing the balance just before the statement date.

There are lots of threads around here that have thrashed out this subject in great detail.

[tradinglife]

I was planning to charge $20-$30 on each card then pay off before due date? Will doing this other thing you speak change the needle that much regarding my score? Thanks!

[user5387]

Scoring is driven by reported balances, and typically you'd want one card reporting $0, and the other 1-9% of the card's limit.

I was assuming you actually want to use the cards month to month, and build up their limits.

If not, then making small purchases instead of large ones will still work.

[tradinglife]

I just want to do what ever will get my score up more, I don't need a higher limit on the cards. Thanks for the help!!!