I was in debt so long in my life I never dreamed I’d ever be able to use credit the way I wanted it. When that opportunity happened suddenly a few months ago, I swore I’d close all my CC and just pay everything as it came in with my debit card because I’d never give into temptations to carry a credit card debt again. So, I did close them all down except my Capital One Platinum. I then got obsessed with credit scoring and studied up about other successes. One common thing I was finding out was, don’t leave money on the table, utilize it to my benefit since the tables have now turned into my favor.
I slowly started adding cards again. The Discover, Citi Double Cash and my PSECU bank card were the first three, but I got scared and closed the Citi the day it arrived in the mail. I did the same thing with the USAA card. Then the big app spree began in April and I now have a total of 13 cards. I’ve been trying to utilize all of them at one time, and I’m finding out this is not a good idea, and a set up for failure. I paid each balance in full before the due dates, but I allowed cards to report balances, which I know was a mistake. All these cards makes it difficult to keep track of.
So, last night I brain stormed a new strategy. I’m going to rotate my rewards cards. This month I’ll be using my US Bank Cash+, BJs Perks MC (Comenity) and Discover. The US Bank Cash+ will be replaced next month with my Capital One QS, then that will be replaced with my Barclay Rewards in August, the Chase Freedom in Sept. and Discover in October.
The BJs MC and Discover cards will be used monthly because with BJs I get 10 cents off per gal. of gas and Discover will be used for all other purchases throughout the month – food, insurance, etc. Each of the idle cards will not get used for 4 months in between. I will let the Discover card post around $ 20 each month, but everything else will be posting $ 0 each month so my usage will show low, even though I’ll be spending over $ 1,500 each month on the 3 cards.
This will make keeping track of these cards a lot easier for me, I will be paying before the Close dates, let a small balance post on Discover, and hopefully my FICO score will also respond and I can reach my goal of 800+ from each CRI.
Anyone see any flaws in this strategy? Is 4 months idle for cards too long? Should I report a small $ 20 balance each month, or should I report $ 0 each time? Thanks in advance for your comments to help me out here. I’ve done a ton of reading up on myFICO since joining the end of April and think I’ve got this pretty down pat.