How many of my credit cards should have a balance?

I have 5 credit cards with different limits and rates.I'm in the process of paying them all off, however I know you need to have balances on your cards for healthy credit. How many cards should have a balance and how many should be unused?|||Check the terms of the accounts to see if/when they charge inactivity fees. Having zero balances on them all would not be bad for your credit score, but it's better to show future creditors that you are making monthly payments and handling credit responsibly. Right now you're making payments to several cards and it shows on your report. Once you pay one account off, the report will still show you are making payments to the others - which is good. Focus on paying off one account, then only use that card if it charges an inactivity fee after so many months - use it for something small you were going to buy anyway, like gasoline, and pay off the entire balance before the due date and only do this every so many months to avoid the inactivity fee.





To pay off debt, take a targeted approach. Prioritize your debts, make the minimum payments on all debts except #1 on your list. Once that debt is paid off, take what you were paying toward it and put it toward #2 on the list. There are a few approaches to prioritizing debts: lowest balance, highest interest rate, highest minimum monthly payment. Lowest balance will mean paying off one account the fastest. Highest interest will generally save you more money in the long run. Highest monthly payment will mean more money freed up for the next debt. Each of these are valid approaches. Below is an excel template that may help you determine the best way to pay off debt; you can run scenarios and see the account pay off dates and total amount paid for each scenario.





The best way to use a credit card is to keep the balance below 30% of the credit limit and pay off the entire balance each month. This builds your credit history and avoids interest charges. Once you are debt-free on all the cards, make a plan that works for you as to which card to use for what.|||What you think you know is wrong. You do not need to have balances on your cards for healthy credit. The more balances you have on your cards, the less healthy your credit is. Your credit is healthiest if you do not have balances on your cards.|||Minimum balance in cards is a policy matter of each institution. It should not be generalized. You are advised to get the requisite balance information from the concerned institutions. Good Luck|||I was told by my bank about a month ago, that the government considers having 3 credit cards being paid monthly is average/ideal. they said 5 is almost above average.