topic Re: Multiple credit cards and monthly usage in Understanding FICO® Scoring

Multiple credit cards and monthly usage

Anonymous — Thu, 28 Jan 2016 17:16:24 GMT

Hello, Im sure this has been asked before, but im not having any luck searching for answers.

I have 3 open credit cards. All PIF on due dates every month (I.e. Never collect interest)

Visa <1% utilization
Amex <1% utilization
Mastercard ~15% utilization

Overall I average 10% utilization combined.

I use the Mastercard for 99% of my spending because it has the best rewards, but ive been making small charges to the AMEX and VISA every month because I read it helps my credit score to keep these active.

I have no small recurring expenses I can set and forget for these 2 lesser used cards, and its a bit of a hassle to remember which has been used already and timing them so they post on each billing statement.

So, Im asking is there actually a benefit to using every card I own every month? Or will my credit score remain the same if I just use the cards every 3-4 months to keep the accounts open?

Re: Multiple credit cards and monthly usage

Anonymous — Thu, 28 Jan 2016 18:35:47 GMT

Gullydwarf wrote:

So, Im asking is there actually a benefit to using every card I own every month? Or will my credit score remain the same if I just use the cards every 3-4 months to keep the accounts open?

Yes. This.

I personally try to use a new card at least once a month for the first 3-4 months, just so it starts out with a series of amounts owed and payments in full. But after that there is no scoring or credit profile advantage to using a card every month. You just want to use it often enough to be certain it won't be cancelled. Once every 4-5 months is fine for that.

PS. Welcome to the forum!

Re: Multiple credit cards and monthly usage

BallBounces — Thu, 28 Jan 2016 20:37:56 GMT

As usual, CGiD is spot on.

Folks often confuse:

Behaviour that optimizes a short term FICO score

with

Behaviour that optimizes a long term FICO score

with

Behaviour that pleases a card issuer

with

Behaviour that is typical of a normal, sane person.

Certainly there is some overlap in the Venns, but finding it can be tricky.

Re: Multiple credit cards and monthly usage

SouthJamaica — Thu, 28 Jan 2016 23:09:24 GMT

@Anonymous wrote:
Hello, Im sure this has been asked before, but im not having any luck searching for answers.

I have 3 open credit cards. All PIF on due dates every month (I.e. Never collect interest)

Visa <1% utilization
Amex <1% utilization
Mastercard ~15% utilization

Overall I average 10% utilization combined.

I use the Mastercard for 99% of my spending because it has the best rewards, but ive been making small charges to the AMEX and VISA every month because I read it helps my credit score to keep these active.

I have no small recurring expenses I can set and forget for these 2 lesser used cards, and its a bit of a hassle to remember which has been used already and timing them so they post on each billing statement.

So, Im asking is there actually a benefit to using every card I own every month? Or will my credit score remain the same if I just use the cards every 3-4 months to keep the accounts open?

I don't think it has any effect on your score; but I think that using it less than once every 3 months runs the risk of the account being closed or credit line being decreased due to inactivity.