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How to use 6 Credit Cards effectively
Hello @ all
I have the following Cards
1x Amex Cash Everyday - $8000 Limit
1x Blue Cash Everyday - $ 2000 Limit
1x CapOne Quicksilver - $ 2000 Limit
1x Barclay Miles & More - $ 3500 Limit
1x Divover Miles - $ 1500 Limit
1x USAA Preferred Cash World MasterCard - $12000 Limit
1x Kohls Store Card - $ 600 Limit

Makes a total credit limit of $29.600

My question is how to use all cards effectively?
Is it smart to use every card and put a max balance of $100 on each card and pay it off in total?

With that high amount of credit available I am concerned that it will rather lower my score if I only use $600 every month. I could afford more but it's not really necessary.
I would highly appreciate some advice
Thank you very much

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Very good question, this is something that I thought about as I signed up for more and more credit cards (I currently have 6, just as you do).  Long story short, yes you should try to make at least one purchase on each card every month and then pay it off.  The reason is two-fold:

1) 0% utilization rate won't necessarily lower your score but it could certainly prevent your score from going up.  Credit agencies like to see that you are responsibly using your credit as opposed to not using it at all.

2) Not using your cards for an extended period of time (this can be as little as 3 months for some issuers), could result in your line being terminated without warning! This not only takes away an available line of credit but also lower your credit utilization (by reducing your denominator: Credit Balance / Total Available Credit) which in turn may ultimately lower your credit score.

The solution I found best for myself was use 5 of my cards for small recurring charges each month (1 for netflix, 1 for gym membership, 1 for phone bill, etc.)  and 1 card for every day use.  If you don't have any or enough monthly recurring charges to spread around for your 6 cards, I would recommend being diligent each month in making a small purchase on each one (a coffee, for example).   

Hope this helps!

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Thanks for your comment! 

would you agree on using the the credit cards with the highest balances (12k USAA & 8k Amex EveryDay in my case) as my main cards?

And use the other cards for monthly expenses like Netflix, Hulu, Phonebill etc....

As you say, I want to really use the cards to where it has a positive effect on my score.

the utilization should be 10%, which would result in spending a minimum around 3k a month.. So $500 on each card.

going with that plan, what do u believe how much my score could go up in a 6 to 12 month period?

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I have a question for you b/c I've been searching the web for a specific question that I have, but I haven't seen any answers to my question as of yet. Your answer to the previous question by far is the closet  I've seen. I'm quite saavy with credit, credit cards, establishing, maintaining and building credit. Nevertheless, there's one simple thing that seems to stumped me (It's always the simple things that gets me).  

I'm currently seeking an effective way to raise my credit quicker via credit cards. I have this notion that if I limit the cash I use tremendously and instead use nothing but my credit cards for ALL my purchases instead and swiftly pay them off before my statement balances are forward to the credit bureau(s) will that be an effect method? In other words, can I put away my cash and use nothing but my credit cards to increase the speed of raising my score?

Also, speaking of statement balances should I leave a minimum balance on all of my cards before the balances get forward to the credit bureaus(s) (not to exceed a combined total of 30% utilization rate) or should I pay my credit crads completely before the statement get submitted to the credit bureau(s). I'm worried that If I do this everytime my statement get submitted to the bureau(s)  that they'll see a utilization rate of zero which will not help me raise my credit. If I can have your assistance in this matter it would be greatly appreciated. 

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Re: dashawnrollins1986

To answer your first question it would probably be negligible to use your credit cards exclusively for your spending (even if you keep your total utilization rate below 30%).  The only ways to use credit cards to raise your score is to never miss a payment (35% of your score) and have a long credit history (30% of your score). The way to accomplish the first one is explanatory, in order to accomplish the second is try to limit the number of new credit cards you apply for.

As for your second question, never carry an owed balance over the due date on a non-0% apr card. I understand your worry but let me use an example to assuage them. Let's say the billing period is from the 5/1/15 to 5/30/15 and due payment due date for that period is 6/10/15. That means all the charges you incurred, let's call it $500, during the period will be due 6/10/15. If you use your card between 6/1/15 and 6/10/15, let's call it $50, that will not be due on 6/10/15 but will still show up as part of your total outstanding balance. By paying the $500 and not the $550 you will notice on your statement that you are paid in full for the 6/10/15 due date. The credit card issuer will report that you made a timely, in full payment but that your utilization rate is above 0% because of the remaining $50.

re: RegHen81

I would recommend putting the small recurring charges on the cards that offer the worst rewards and using the card with the best rewards as your main card.  Credit bureaus are agnostic to how you spread out your spending (as long as each card is below 30% utilization.

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Reward Summit, Glyph, and Smorecard are apps you can download onto your smartphone. They utilize GPS  technology to tell you what card to use when and for what. 

Your Blue Cash Everyday earns 3% on supermarkets, and purchase your gift cards there too, up to $6000 yearly, and 2% on fuel. Amex Everyday earns 2% at supermarkets up to $6000. Amex also offers travel discounts booked through their website.  Your mileage cards generally earn you airline miles, perks on car rentals. 

I suggest you go to your card websites, and look here on Credit Karma, to educate yourself on your cards and the perks they offer. I used to have a lot of credit cards but am paring them down to earn the best rewards. I don't fly or travel too often, so mileage cards are useless to me. For my purposes, Amex Blue Preferred earns 6% on supermarkets, Chase Sapphire Preferred earns dining perks and travel perks if you book your travel through the Chase website, Bank of America cash rewards, and Ameriprise World Elite Mastercard are my cards now. These cards are currently working for me, but a year from now may not. I had the Amex Everyday Preferred, but now trying to earn the extra 50% after 30 purchases a month isn't working for me anymore. 

You have to look at your situation and spending habits.

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Thank you for your reply... i really appreciate it but your answer is only "limited" helpful :-)

My question is in regards on manageging the cards to where they show usage and great utilization.

The concern I have is that it might hurt my score if i dont use a certain ammount of my limit..

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Using 6 Cards effectively

You didn't state in your questions if you obtained most of these cards in short order.  Hard hits galore may result with too many applications and/or denials occuring in a short period of time.  Now that you have them along with a nice total credit limit, using them wisely will keep you in a very positive scoring range.  Most of the advice you already received is well taken.  Along with that I would recommend trying to get all cards down to no more than 10% useage per month.  Some banks and users  recommend 30% or less, and if you happen to make a larger purchase one month and cannot pay it off, at least pay it down to 10%.  That will result in the best positive monthly scoring.

And don't run these zero card offers up to the max if possible.  Remember that your card issuer and other users may be making up the credit rate difference.  But we all know the the banks prefer you to use credit cards with higher interest  If you make a large purchase on a zero rate card, try to pay it down quickly for best scoring results. 

For the best use of paying card balances before they are reported monthly to the credit bureaus, be certain to pay before the due date.  Your STATEMENT DATE is most often a very few days after your due date, so that gives you time to allow the paid off card or low balance to be reported on your credit.  That makes for the most effective way to keep your card useage percentage down. 

If you have a mortgage, auto loan, and other retail credit (not credit cards) along with this assortment of cards, then you're "living the American dream" (pun intended) according to the banks. 

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