ljj22

Use your card, pay most of it off before the statement, BUT leave less than 10% until the statement arrives. So say I have a limit of $1000.  I spend $400 that month.  So I should pay off a little over $300 of it, so that when the bill comes, I owe $99 (9.9%).  This will show up on your credit report as 9.9% utilization of that card, which is good.  Anywhere between 1% and 10% is good.  0% makes it seem like you're not using the card at all, which will generally give you a lower score than 1%.  Then after the bill comes, be sure to pay it all off in full, so you don't have to incur any interest. Or, if you prefer to not use the card very much at all and just use cash for most things, just use it for one or two very small purchases each month.  That way, when the bill comes it will only be for $10 or so (1%, with $1000 limit), and you can just pay it off when the bill comes.

Did that really happen?

@tg101688, If you use a credit card LIKE cash, then you won't have a problem.  I've never paid a cent of interest, but I have a good credit score.  I pay my card periodically throughout the month and leave a small balance until after the bill comes.  And then I pay that off.  I don't really use cash for anything except the places that charge you fifty cents if you don't charge over ten dollars or whatever.  I'm spending money anyway; I might as well earn points on it. Anyway, I've been wondering the same thing.  I don't think it's really a big deal how many cards you have though, as long as they're in good standing.  It's more important to have a good mix of credit (something I don't have, since I don't have a car/home/etc.)

What you SHOULDN'T do is get the card, charge it, and cancel it.  That will only harm your credit.  "Building credit" won't work if you cancel cards - because then your average account age will never build.  A large section of your score is the age of your credit account.  Even having a card and locking it in a drawer somewhere where you'll never use it would be better then using a card, cancelling it, etc.  However, I suggest having one card and using it for a small purchase each month, paying it in full after the statement comes, and then putting it away somewhere for the rest of the month (since you don't trust yourself with it).  You just have to think of credit cards like debit cards, or cash - use it like money you have on hand, and remember that you will have to pay it at the end of each month.  Maybe it'd be a good idea to tie the card to a small bill that can automatically come out of it each month.  That way you can literally lock the card in a drawer and never look at it again, but you'll be consistently using it each month.  And if you only use it for that one thing, it will be easy to pay it at the end of the month - you just pay your phone bill to the credit card company instead of the phone company itself, or something like that.

It's probably always safer to not cancel the other card.  Cancelling a card won't really do you any good unless you're struggling with it and find it tempting to make too many purchases.  Keeping the old card will increase your average credit age, which is good for your score.

Still pay it off every month, but wait until the statement comes.  For example, if you pay it all off before you get the actual statement (via online banking transfers, early payments, whatever), then you get 0% for utilization.  What is best is to pay a good portion off so that when your statement comes you only owe 1-10%.  So in your case, anywhere less than $3,000 but NOT $0.  It is still a healthy habit to pay it off each month; you don't have to carry a balance, as some say.  Just use it at least once a month and wait until the bill to pay it.