Old Aug 10, 2013 | 04:49 PM
  #6  
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LABARINTH
Better Than Canada!
 
Joined: Dec 2002
Posts: 10,821
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From: Baltimore, MD
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I read somewhere that it is better for you overall credit if you use and pay off a very small portion of your total credit. So if you have one credit card with a low limit (say $1,000) and you put $500 on it every month and pay it off you are using 50% of your credit every month. But if you have 2 credit cards each with a $5,000 credit limit, one for emergencies that is never used, and put the same $500 on the other every month than you are only using 5% of you total credit. Apparently the second scenario is much better for your overall credit. I have a second credit card that I never use and I was about to cancel it until I read this. I know this has nothing to do with the car but it is just some food for thought as you try to rebuild.
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