will a paid balance raise my credit score easier than zero balance?

i have a low credit score due to past deliquencies. i still have over 7 credit accounts according to FICO. i want to know what is the best way to raise my credit. i know that the credit is based on account history and the ratio that i'm borrowing against credit limit, so does that mean it's better to keep these accounts? i've also heard that having too many credit cards is bad, but is it bad because i might be tempted to use them or is it bad for credit score as well. i'm most concerned about credit score.. i no longer have financial issues. also, is it better to use the cards a little bit then pay it off every month so at least i'm "making payments on time", or is it better to keep the balances at zero? if it is better to pay something off every month, does it matter how much i'm paying off? so if i use the card a lot then pay off everything every month, is that good for my credit score? thanks, thanks for the answers. question, is it better to close the accounts i have open? or is it better to keep all of them to raise my average history length and the general debt vs. limit ratio lower?

Public Comments

1. no..keeping it at 0 or far from limit helps more with regular payments
2. to many cars is very bad even if they have zero balances on them the reason is that you in essence have that money to use if you need it. Try to close the cards you have theat you dont need and paying off a credit card is a huge pos. to getting better scores. When you close an account try to contact the company to ask them to put 0 on account limit even though it is closed the money still appears to be usuable.
3. You're better off using them if you can pay them on time - no activity is worse. It shows your ability to pay your bills on time. Also, it wouldn't hurt to carry a small balance over a month and then pay it off the second month. You can find out alot of information at the link below too.
4. In order to raise your credit score utilizing the accounts (especially revolving accounts) is recommended, but you don't want to go over 20-30%. However, I would encourage you to get used to using cash for all purchases. People think that the FICO score is the end all be all of finances. While it is used by almost everyone to determine your credit worthiness, it is by no means an exact indicator of your ability to pay things back. I mean there are some millionaires who have a 0 credit score because they don't use credit (debt); they use cash. So don't worry if your credit score isn't high. Just make sure that the items on your credit bureau reports are correct, and continue to make payments on time.
5. Your FICO score is based on: Payment history - 35% Amounts owed - 30% Length of credit history - 15% New credit - 10% Types of credit used - 10% They look at how much credit you have - your potential to spend that credit, how long you've had that credit, how many other applications you are filing for additional credit, etc. You're better off using your cards, and either paying them off or at least on time each month. But, try to keep your balances below 30% of your limit. Even if you pay them off motnhly, your credit report will more than most likley still show a balance each month - depending on when they report to the Credit Reporting agencies. Check out the link below. You can obtain your credit report free once per year from each of the 3 major reporting agencies. I usually get one in January, one in May, and one in September - this allows me to keep en eye out to make sure that correct information is being reported - and if not, I can dispute it to have it corrected.
6. As long as your balances are below 30% of your credit limit it makes no difference score wise if you pay in full or make monthly payments. There is nothing wrong with having credit cards as long as you manager them correctly, a lot of people think that available credit somehow affects credit score, it does not only the ratio of debt to credit does. Use your cards for every day things, never exceed 30% of your credit limit in any given month and pay them off in full before the due date and you will be fine.