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There are a number of things that effect your credit score, and the number of you cards is one such thing -- though not how you might think. Really what lenders want to see is if you have different kinds of credit and how much debt you have on your accounts. Usually they take a percentage average over your accounts or calculate what they call your debt-to-credit ratio. The more available credit you have on your accounts versus how much debt you have, the better your score will be. So the trick here is two fold. You want to have varied credit, but you want as a high an available balance as possible.
The card with the higher balance at first is going to boost your score because you have more available credit, but later if you keep it open you'll see that the added credit history will contribute to your score too!
When you're trying to build a solid credit score it's important to get a comprehensive view of what is actually effecting it...
Your Credit Score (also known as your MyFico score) is calculated with the following breakdown:
* 35% -> History of Payments
* 30% -> Debt to Credit Ratio (available credit)
* 15% -> Credit History (length of open accounts)
* 10% -> New Credit (are you expanding your credit)
* 10% -> Credit Types in Use (varied credit types from loans to credit cards)
If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score.
Here are my 10 steps you can use to build your credit score quickly. I raised mine to well over 700 points fro 500 using these steps in less than a year:
1. Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score monitoring listed on the article below. It really helped my get my score up.)
2. Never Miss a Payment, Starting Today
3. Never use more than 20% of your Available Credit
4. Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
5. Extend Your Credit Limit on Cards You Already Have before You Get New Ones
6. Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
7. Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
8. If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
9. Take out a Small Personal Loan and Repay it Over a Year
10. Ask Someone With Good Credit if They will Account Shadow you
You can read more about these tips on my blog: How Can I Increase My Credit Score
* http://millionster.com/articles/debt/increase-fico-credit-score/
Hope I was able to help you understand your situation better.. Good luck =)
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