What is the difference?

[Anonymous]

I know that we should PIF about half the credit cards every month by the date when the balance to be reported to the CRAs gets generated for better util. But what is the difference between doing that and just simply paying down the balances for 1 to 9% util on all cards? Why is the former better?

[fused]

For max FICO points, it's best to have less than half of your CCs reporting any balance. So for example if you have 6 CCs, have no more than 3 reporting a balance < 9.99% of the CL. FICO scoring punishes you for having too many accounts with balances (especially credit card accounts). This is why you should not carry a 1-9% util on all cards.

[Anonymous]

Does the "too many accts with balances" take installment loans into consideration?  I've seen some people say keep 1/2 of your CC's zero'd out, and I've seen others say 1/2 of your accounts in general. 

[fused]

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modernsurrender wrote:

Does the "too many accts with balances" take installment loans into consideration?  I've seen some people say keep 1/2 of your CC's zero'd out, and I've seen others say 1/2 of your accounts in general. 

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Technically yes, but in FICO scoring, installment utilization calculations carry far less weight than revolving util calculations. With installment accounts, paying them on time is more important than balances.