Demonstrate (through your credit history) that you're actively reducing your balances, while properly and responsibly utilizing your credit cards. Depending on your personal situation, it could make sense to spread your credit card debt over three, four, or five cards, while keeping your balance on each of them below that 35% of the total credit limit mark, as opposed to maxing out one credit card. If you do this, make timely payments on each card and keep them all in good standing. Managing your credit card debt appropriately will not only keep your score from dropping, it could also give it a boost.
Deciding to spread your credit card debt among several cards might help your credit score, however, before adopting this strategy, calculate the interest you'll be paying and compare interest rates between cards. In some cases, you may save money by consolidating your credit card balances onto one low-interest card, as opposed to having that same balance spread over several higher interest bearing cards. Do the math to help you make the decision and take the action that's best for you.
Strategy 3: Having a Good History Counts, So Don't Close Unused Accounts. One of the factors considered when calculating your credit score is the length of time you've had the credit established with each creditor. You're rewarded for having a positive, long-term history with each creditor, even if the account is inactive or not used. The longer your positive credit history is with each creditor, the better.
