How should you distribute credit card debt to improve your credit score?

You should only have 3-4 cards. Only what you need. Too little of cards is bad, too many is high risk. Typically, mortgage, car loan, 2 dept. store cards, 2 major cards, and maybe a personal loan. You have a good mix of installment loan, and revolving debt. Try to keep your balance medium, not to the limit.

Consumers can experience a significant increase in their credit scores, over time, with properly managed revolving accounts. A consumer get 30 points added to their credit score for 2 to 4 revolving accounts, paid on time monthly, that never exceed 30% of their available credit limit. This calculates in the scoring models as a positive because it appears that you do not need the credit available to you, and that you are able to manage debt effectively over a long period of time.

It is important how credit card debt is distributed. Scoring software takes the overall ratio into account, but it also compares ratios on each card. Additions or deductions are made according to both ratios.

Ideally, your total ratio would be less than 30%. Also, each card needs to be below 30%. Both of these factors would cause an addition to your score. For maximum points (perhaps right before a major purchase) keeping your ratio between 1% and 9% will yield the most points.

Credit card balances are only one of a myriad of factors used to calculate credit scores. But this information can help a consumer manipulate the factors under their control to obtain points when they need them.