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Best Way to Use Cards

New Contributor

Best Way to Use Cards

I have paid off all my CCs to a zero balance.  I do have some regularly recurring fees that I have spread out amongs 3 of my CCs....small amounts which I am able to pay-in-full every month.  Is it best to leave the charges split up between the 3 cards, or place them all on one card (the one with the higher limit so as not to have a high utilization)  


Anyone have any insight/input on this??  Smiley Indifferent

Starting Score: 5 43 Ex May 2012 EQ May 2012 550
Apr 2013 Score: Apr 2013 TU/ 683 Ex /670 EQ/ 686

Dec 2013 EQ/751 TU/730 EX 762

Goal Score: 740

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Message 1 of 5
Valued Contributor

Re: Best Way to Use Cards

Use whatever gets you the best rewards.  If those are either equal or not applicable, use the one you think you can get the best CLI's out of.  When given consistent use your more easily get CLI's.  Use them all at least once every three months.  Pay the bill in full a couple of days before your statement ending date to prevent balances from reporting.  

Message 2 of 5
Established Contributor

Re: Best Way to Use Cards

1 account @ 2% of total credit limit ( $200 / $10,000 all cards combined limit) rest of the cards at 0% when they report = optimum

total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Message 3 of 5

Re: Best Way to Use Cards

If you don't care about rewards, I would use a different, single card each month to avoid managing multiple cards at once and still show activity every few months.

Message 4 of 5
Valued Contributor

Re: Best Way to Use Cards

I have all of my recurring charges on my cap1 cash rewards card because it has a $2500 limit so there is wiggle room afterwards. The Chase Freedom only has a $1000 limit so I don't put any recurring charges on that card. Instead, that is the card I use for everyday expenses and I try to match the charges up with the 5% categories while the Cap1 card gets the charges that are only worth 1% on the Freedom as they go towards the 50% bonus cash back.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 5 of 5