I have three main cards that I use: Citibank Dividend Platinum Select Amex Blue Discover Platinum My question is, does the amount of usage affect my overall credit history and scoring. Let's say for instance I use my Citi and Amex for the majority of my purchases during the month and I use the Discover card for only 1 small purchase that month. Does that affect my credit score in any way because I use 2 out of 3 cards the most? The reason I wanted a Discover was because of the cashback reward. Then after I discovered that I could convert my Citi Platinum Select to a Dividend Select, it was too late, I already had the Discover Platinum. The Citi card has a better cashback reward than the Discover so I use it more. Should I just keep the Discover account open so it lists as active and so it lists as a third positive tradeline? Should I close my Discover account since I don't use it too much or let it age for about 1 year or so. I'm guessing if I close the Discover account, this will free up more space on my other 2 cards for higher credit limits with ease wouldn't it? Any thoughts are greatly appreciated.
Note that if you close your Discover Card account, any cashback reward that you have earned thus far will be forfeit. If you really want to close this card, wait until you have received and cashed your bonus check for the year. It's probably best that you keep this account open at least one year, anyway. Opening accounts and them closing them too soon reduces the average age of your accounts, which negatively affects your credit score. As for usage, aim to get 30-40% of your limit on a given card used at one time, then pay it off. You should only have to do this once to get it to appear on your credit report. This is the range that lets prospective creditors that you will use a card, but not abuse it (or so I've heard.) Don't worry about "regular" usage every month, unless you are going to try to work on this card to get the limits raised or the interest rate lowered. Some cards like to see regular usage (some purchases every month) to up your limit. Some like to see regular "more than minimum" payments. Some will offer you higher limits and lower rates if there is no activity at all, to encourage you to use their card. Sometimes you can get the customer service reps to tell you exactly what is looked for (activity, payments, non-activity) when they make limit/rate decisions. For my Discover, they regularly upped my limit whenever I approached my current limit. They *want* you to owe them lots of money. -ingenue
I think it does matter. I would rotate the usage on the cards, always being careful to use close to the limit and making the payments on time. I have built my credit mostly doing the credit card shuffle. It works for me. www.creditsense.com
