Should I be using all of my credit cards?

Question

I am rebuilding credit and want to be on the right track this time around. When I was 18 is when I first got some credit cards and didn't really know the value of credit. Now that I am older I am very aware of it. So far I have been paying all balances off in full before the payment date. I just need a few pointers... I have 2 new credit cards should I use them to report credit utilization?

Jake · Answer

Making small purchases so there is some card payment due is probably better than a stagnant card with no payments being reported.

One card based credit building guide
http://www.forbes.com/sites/moneybuilder/2014/05/02/11-ways-to-raise-your-credit-score-fast/

DON W · Answer

I agree with Jake. Use each of your cards at least several times each year, and pay them off in full. Most people primarily use one card, typically the one with the best terms, and keep any other cards for occasional use.

If you don't use a card at least occasionally, it is possible that the bank will cancel it.

StephenWeinstein · Answer

No.  You get the best score by having little or no utilization reported.  Getting more utilization reported hurts your score.

Bill · Answer

Yes as long as you pay off the balances at the end of the month.  It will reinforce your payment history.

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Should I be using all of my credit cards?

4 Answers