How much CC usage is really necessary to boost your credit score??

[tmarie86]

So, my hubby and I have 8 cards between us both and we are trying to rebuild our credit.  The first three I have had for a while and they carry a balance.  The others, on the other hand are new and I got them just to have when I need them and to use in the meantime for gas/groceries and such for rewards and gas savings.  I now have a balance ( 30% of the limit or less) on all of these cards and I am about to pay them all off in full except for the first 3.  My question is, is it necessary to allow the CCC to report a balance on every card, every month to improve my score or will it be boosted just by the few that I keep a balance on?  I JUST made these purchases within the last week but I want to pay it off in full ASAP instead of later in the month after they have reported.  I just want to use them and pay them off as we get paid every week so wouldn't my score still be improved just by me showing that I can use them and pay on time?  Statement dates...report dates!!...This is just all too confusing to me! lol...Any responses are greatly appreciated! :-)

[user5387]

You don't have to let CCs report a balance in order to "use" them.

Many people around here pay off their CCs just before the statement date, so as to show a $0 reported balance.  This sort of technique boosts your score.

You need to use CCs occasionally, for example every 3-6 months, to ensure that they don't get closed for inactivity.

[lg8302ch]

Personally I am rotating cards with balance reporting every month. I just make sure that max 4 accounts report a balance as the ding on Fico is really heavy if over 50% report a balance. Since I use all of my cards regularly this works best for me.

[Revelate]

+1 to what others stated.

Previously with what was reported a $0 balance month to month was indistinguishable for everyone else but the issuer in question as to whether you were using the card or not; however, these days not only the balance but also the payment(s) made over the course of the month are reported and as such that's no longer a problem.

[takeshi74]

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@tmarie86 wrote:

My question is, is it necessary to allow the CCC to report a balance on every card, every month to improve my score or will it be boosted just by the few that I keep a balance on?

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General advice for optimal scoring is to have only one card report a balance with utilization of 10% or less.  So, no, you don't need to let all cards report balances for scoring purposes.

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@tmarie86 wrote:

Statement dates...report dates!!...This is just all too confusing to me!

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I wouldn't worry over report dates.  The statement dates are useful to know though.