Keep Your Credit Card Balances Low
Even if you make all of your payments on time and constantly pay more than the minimum due, having a balance that represents 35% or more of your overall available credit limit on each card will in fact hurt you. If you have a $1,000 credit limit on a credit card, ideally you want to keep a balance of less than $350. In addition you should make monthly payments on the balance that are above the required monthly minimums in a timely manner.
Through your credit history, it is usually highly recommended that you display that you are actively reducing your balances while you properly and responsibly utilize your credit cards. Depending on your personal situation, it could be logical to spread your credit card debt over three, four, or five cards, while you keep your balance on each of them below 35% of the total credit limit mark. This is thought to be better as opposed to maxing out one credit card. If you do this, make your payments on time for each card and uphold them all in good standing. Handling your credit card debt properly will not only keep your score from dropping, it could also give it a boost.
Settling on spreading your credit card debt between several cards might help your credit score. However, before applying this method, you should probably calculate the interest you will be paying and compare interest rates between cards. In some cases, you may save money by consolidating the balances of your credit card onto one low-interest card; as opposed to having that same balance spread over several higher interest bearing cards. You should calculate the numbers to help you make the decision and take the action that is best for your situation.