Your best bet is to play what people have started calling "the FICO game." Scores reflect what's on your reports. If you can control what reports, you can control your scores, or at least the utilization portion. Your scores are rewarded if the FICO formula can see that you use your credit (don't park them all), but just barely. The assumption is that you are credit-worthy and credit-smart. Here's how the game is played:
--Let half or fewer cards report each 30-day cycle. If you have 2-3 cards, let one report; 4-5 cards, let two report; and so forth.
--Know when your cards report, so that you can control how much reports. Most, not all, report on their statement date, which is the date that your statement "drops." This is usually 2 1/2 - 3 weeks before the due date. HSBC cards usually report at the end of the month. Some cards report at strange times.
--Aim for 1-9% util, meaning under 10%, on the cards that report. So whatever your CL is, knock off the last zero, and only let less than that report. For a $1000 CL, knock off the last zero (--> $100); let $10 - $90 report.
--About 4 or 5 days before an individual card is due to report, pay down (or charge up) online to whatever figure you want to report. Then don't use it until after it reports. Then, if you did have a balance report, go ahead and PIF it.
Then start all over again! An example:
Card A: $1000 CL / $87 reports / 8.7%
Card B: $1500 CL / $75 reports / 5%
Card C: $500 CL / $0 reports / 0%
Card D: $750 CL / $0 reports / 0%
Card E: $500 CL / $0 reports / 0%
overall util: 4%
This is a pretty high-maintenance way to live the rest of your life, but it's a great way to get a quick score boost. You might try it for 1 month just to get a feel for how it works, and to see what your scores can do. Then if you know that you will be applying for something, start this up again about 6-8 weeks beforehand to let everything cycle through. In the meantime, don't let the balances creep back up, so that if necessary, you can quickly knock everything back down again. Some people do this on a regular basis though. They only use one or two cards in any given month, control what reports on them, pay them off, and start up again the next month.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007