Re: 9 accounts in my credit report
11-10-2012 05:56 PM
If it doesn't cost anything to keep a card (ie no annual fee), don't close the account. Instead, sock drawer it and let it age. You may need to use it for a small purchase once every 6 months or so, just to keep it active so that the issuer won't close it automatically.
The best way to manage revolving credit cards is to let them all report zero balance, except for one. For that one card, before the statement date, pay down the balance to 1-2%. Then after the statement date and before the due date, pay the remaining statement balance. The reasoning is that the statement balance is what gets reported to the CRA so it will look like you are at 1-2% utilization, which maximizes your score. IMO, I would use one of the rewards cards as my primary card.
If your financial situation doesn't allow you to do this, then use the same strategy with either 2 or 3 cards.
If you can't achieve 1-2% utilization, try for <10%. And if that's not possible, try to keep utilization <30%.
Hope that helps.
11/02/2012 Peak - EQ 790 (ScoreWatch EQ FICO)
07/07/2014 Current - EQ 794 (Walmart Discover TU FICO 08 Classic)
GOAL - 800! - App free since 03/13/2014