Card utilization strategy question

[phxphun]

I've read many of the posts here, but I'm still not sure what my best options would be to raise my scores.  

I have:

One Master Charge that I use exculsively. $25k limit.  I typically run it up to around $3-4k per month and then pay it off completely each month.  (I didn't know about not paying it off until after it gets reported until I read about it here, so I'll start doing that).

One Visa Platinum (bank issued). $6k limit.  I have not used it at all in over a year.

Another Visa Gold (same bank issued).  $4k limit.  Also have not used it at all in over a year.

Two department store cards that get only about $300 activity every 8-12 months. 

1) Should I keep the balance lower on the MC?  

2) Would it help my scores to start using the unused cards?

3) Would it help to cancel the department store cards? 

Thanks for your advice! 

[haulingthescoreup]

You should use the other cards to keep them from being canceled by the issuers for inactivity.

You will probably get a one-time score ding for them being used for the first time in X number of months. This ding is gone the next month.

You want to pay down/ off balances BEFORE they report, not after. If you keep all the other cards reporting $0 each month (even though you're using them), I'd shoot for letting $2250 (9%) or less report, and then pay it off. I'd actually go for a lot less than that, maybe a couple of hundred.

Your overall aim is to use all cards, only let one report a balance, and have that figure be somewhere between <1% and 9%. And then don't forget to pay it off.

[phxphun]

Thanks haulingthescoreup!  When you say "let one card report a balance between <1% and 9%", is it ok to pay it down to $0 before reporting?  I normally just pay the balance off every month. 

Message Edited by phxphun on 03-12-2009 03:25 AM

[brother7]

Let's assume the CCC reports the balance to the CRA on the statement date.

For the sake of discussion, let's say the CL=$1000, the current balance is $200.

Util = 200/1000 = 20%.  So what you want to do is make a payment of say $150 BEFORE the statement date. That way, util = 50/1000 = 5% is what gets reported to the CRA.  When you get the statement (and before the due date), you can pay off the remaining 50.

For credit score purposes, it's best to report a small balance, with util <10% to the CRA.  Reporting a zero balance to the CRA isn't as good as reporting a small balance.

[phxphun]

Thanks borther7.  I will take yours and hauling's advice!