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HHIBBChef

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If I use 1 Credit Card to pay ALL monthly bills then pay it off Monthly, RAPIDLY increase my score?
Should I use one of my Credit Cards to pay ALL my monthly expenses. Every month it would have a ‘high’ of roughly $1,800.00 BUT I would pay it off EVERY MONTH … basically I would be using my Credit Card instead of my Debit/Check Card … and YES I am disciplined enough to “not let it bite me in the a$$” … see below statement … I know what you could be thinking. SO, IF I DO THIS, would it help me increase my Credit Score faster? If not then are there any suggestions on building it faster? I have moved my score from the mid 500’s to 663 (most recently) but even that has been a 3 year process. I wondered if showing I can manage my credit would “by doing above” help?!

OK, first let me clarify, I had very bad credit, yes I could blame the ex-wife but the “ex” should speak volumes. I have been “lucky” enough to have acquired 4 different credit cards … NONE are ‘secured credit cards’ … well, one was but it was converted to unsecured. I have 4 cards, one has a “limit” that would cover the above … the combination of the three would act as my “go to card” in an emergency. And, no, I would not use my ‘debit’ except for anything other than paying off the credit card.

More insight: yes I have a 401K, and IRA and a Brokerage Account that are all being funded heavily. And I only spend about 60% of my take home pay … and yes I have changed my ways and the lesson was learned … again I’m single for almost 6 years and love not having the ‘dreaded phone calls’ or the ‘declined embarrassments’ or the ‘No, I won’t check the mail for weeks’ feeling and YES I sleep WAY BETTER at night … I may not eat out or go dancing every night but the ‘peace’ I have is way better!

Thoughts? And Thanks in advance!

Me in SC

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I would suggest not putting all of your monthly balances on one card unless you have enough other cards to keep your overall utilization down below 10%.  While you may be able to afford it on one card, you also increase that card's credit utilization percentage.  Meaning it would take more extremely low utilization cards to bring your overall utilization down.  And some creditors will actually close your account if you don’t use them at least some.

I would think, in most cases, that the best strategy would be to spread that debt over many cards instead.  Best practice would also suggest that if you just place enough to keep your overall credit swipes less than 10% total utilization per month; your score will benefit faster than most other methods.  If your monthly balance is greater than 10% of your credit limits for each card; I would even suggest placing remaining amounts over 10% on a debit card since it doesn’t report on my credit and I ensure only the information I want reported is reported.

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