Is it better to have one credit card with a high balance, or two credit cards with average balances?

Answer 1

It is better to have several credit cards with NO balance.

Other than that, carry a balance with the card(s) with the lowest interest rate. But they all hose you so you should never carry a credit card balance. Its the most expensive way to borrow money.

Answer 2

Neither. It's far better to carry a zero balance on your credit card(s). The interest rates these companies charge are so high that they should be illegal, IMHO. In fact, at a certain point, depending upon the card in question, if you only make the minimum payment, you will never pay off the balance. This is called slavery, isn't it?

Best advice I can offer: use your credit cards as a convenience to you only and always pay off the entire balance each month so that you don't pay a single red cent for that convenience. Then, you win!

Answer 3

You have to look at it like this.

Your total debt divided by your total credit line should be lower then 35%. So if you have one card with a 5000$ balance and a 6000$ total credit line you are at an 83% debt ratio which is very high.

Now if you have two cards both with credit lines of 6000% and have 2500$ balances on each card your debt ratio is 42% which is alot better off.

So in most cases I would say 2 cards with averags balances.

Answer 4

Your debt ratio (and credit score) will be much better if you divide your high credit card balance among two cards. In simple terms, it's more attractive to creditors if you only use some of your available credit on two cards vs. using most of the available credit on one card.

And altough it may seem better to pay down your debt completely and carry no balance at all, it's actually better to always carry a small balance and continue to pay it down on a regular basis.

Answer 5

Mathematically, I'm not sure which is better. However, you want to make sure that you are NOT at or approaching your credit limit on either card. Lenders do not like that and it will negatively affect your credit score.

If you are moving your high balance to another card with lower rates, that will definitely save you money. You should consider that.

Whatever you decide to do, you should pay it off as quickly as possible.

Answer 6

The balance should always be less then 40% of the credit limit.

Answer 7

Two cards with averags balances looks better on your credit then1 that is almost maxed out.

Answer 8

It depends on your debt to income ratio.....if you are carrying a high enough income then the actual balance matters not quite as much as the payment history and how much is being paid each billing period.

Answer 9

by no potential bypass away a stability. Even leaving a penny stability will reason pastime to be charged on the completed quantity. I even have paid my stability off totally my total existence and characteristic a credit over 800.

Answer 10

Neither! If you have to charge it, you cant afford it!!!!