Keeping your credit card balances under 30% will give you the best score. If the balance gets above 30% your score will take a hit. The closer the credit card balance gets to the credit limit, the more of a hit to the score. The largest score hit will occur if the balance goes over the credit limit.

Also, under the ideal FICO model the “ideal” person should have 3-5 credit cards. If you have had bad credit in the past, having 4 or 5 credit cards will build your score faster than if you only have 1 or 2 credit cards. See our rebuilding your credit section for info on getting more credit cards.

Never close a credit card if you can help it. Closing a credit card almost always lowers your FICO score. If you score is high enough you may not care but, in general, always avoid closing credit cards. Closing a credit card will adversely affect the amount of credit you have available and also will change the average length of your credit history.

I hope this section helps you to manage your credit cards better!