My FICO scores are currently 609/601/608 and I have been reading tons of threads here on how to improve my credit score (hoping to buy a house in a few months). I currently have the following established credit cards (at the suggestion of members here, I have paid them all down to 0 except for one which is at 10% utilization):
– Capital One ($ 75 Balance / $ 750 Limit)
– Contiental Finance ($ 0 Balance / $ 750 Limit)
– Kay Jewelers Credit Card ($ 0 Balance / $ 1000 Limit)
– Tires Plus Credit Card ($ 0 Balance / $ 1200 Limit)
My main thing holding me back is that each of my cards have pretty low limits. After reading some threads here, I have obtained a new Wells Fargo Secured Credit Card ($ 2,000 limit). I should receive this card in the next couple weeks.
My question: Going forward, do I keep my 0 Balance cards at 0 and not use them at all and just use the new Secured Credit Card and pay it off immediately each month? If so, is there an ideal amount I should be charging on it each month? I have read conflicting things suggesting I should charge X% of the total limit and then pay it off each month…that if I only charge a small amount each month, I wouldn’t see much change reflected in my credit score.
Or do I use each card for a small amount each month (rather than just 1 card) and then pay it off immediately each month? I want to make sure I am doing everything I can with my revolving credit to translate into as many points as possible.
TLDR – Is it better to only use 1 card and pay it off each month or use all my cards in small amounts and pay them all off each month?