My Credit Rating

mollymoo

mollymoo

mollymoo

Soldato
Joined
5 Mar 2009
Posts
3,050
Location
North
My credit rating has been rubbish for years due to some big mistakes earlier on in my life. 10 years later I'm trying to improve matters. I have revived an old bank account and got an overdraft that got used and paid off all in the same day. I now have a credit card with them and have purchased about £500 worth of stuff. I have the money in my account to pay this off but wondered, for building up my credit rating, if it would be best to pay it now or later on when the statement comes through.
 
So long as you are using under 25% of your available credit it’ll make little to no difference if you pay it off every month or if you just make at least the minimum payment on time. Obviously for the sake of sparing yourself the interest charges you are better off paying in full.

If you do pay off in full then you are best off using the card every month so as to have a payment history rather than “no data”.
 
Thank you. My interpretation of it all is a lender for example, would look at any credit you have had and how you paid it back, so like you say, use the credit and pay it back each month might be the best idea.
 
a1ex2001 said:
Set full payment on direct debit so you don’t forget to pay it each month!
Click to expand...

+1 for this plan, then you won't forget to pay it and you never have to worry about paying interest. Get it set to take the max payment each month.

I treat my Amex like it's a debit card and always have the funds to pay it in my bank, never ran into trouble with it this way.
 
Paying it off straight away isn't good.

I did something similar to you. I started with a sim only deal from 3, then got a rubbish credit card, then better and better cards with bigger amounts. Now after 4 years I have and excellent credit
 
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