Improve Credit Score with CC

whiteeagle2017
whiteeagle2017 Posts: 10 Forumite
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in Credit cards
HI All :)

I need some advice please , I went for D.R.O 2 years ago and from that time I did't had/have any loans or CC, my credit score is very pure and I will like to start to improve it.I know it will take years..
Been advised to get a low limit credit card and use it and then pay in full...cool but how it works ?
So if I pay for petrol £100.00 using CC on the 1st of the month so when is the best to pay in full ? at the end of that month ? ( so I wont pay the 28.00% annual rate or to pay in full after the statement ? or ...? this is what I don't understand
Thank you for any help / advice or comments

All best
Adrian

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    whiteeagle2017 wrote: »
    my credit score is very pure and I will like to start to improve it

    Not sure what that means, but ignore the score anyway. It's a very very poor guide to your credit worthiness.

    Aim to use the card regularly and clear in full each month - after the statement has been generated, and before the due date.

    The easiest way is by setting up a full pay DD.

    That way you won't pay any interest and will start to build a good credit history.
  • whiteeagle2017
    whiteeagle2017 Posts: 10 Forumite
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    Hi zx81
    Thank yo for your replay.
    Yes I mean ''very poor'' sry :)

    Ok so just to be sure,as soon the credit card statement is generated ( I will have some time to pay of right ? ) and just pay full on the day when the statement is ready
    Many thanks
    Adrian
  • tempus_fugit
    tempus_fugit Posts: 1,189 Forumite
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    Yes. So for example, my Barclaycard statement comes out on the 13th working day of the month. I then get around three weeks to pay it, so even if I buy something on, say, 20th June, I don't have to pay it until around 11th August. I have a direct debit to always pay the statement amount, so anything bought since that statement doesn't have to be paid until the next month. Hope that makes sense.
    Retired at age 56 after having "light bulb moment" due to reading MSE and its forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.
  • whiteeagle2017
    whiteeagle2017 Posts: 10 Forumite
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    Excellent thank you very much!! :)

    Kind regards
    Adrian
  • whiteeagle2017
    whiteeagle2017 Posts: 10 Forumite
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    ...oh one more think , what is the best % to use each month from the credit card ? my start limit is £1000 I read that need to be 30% of the credit limit so max £300 each month, is that right ? or it not makes any different ??
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    On a low limit, it's not so important. Around 50% would be fine though, especially if you're clearing in full.
  • whiteeagle2017
    whiteeagle2017 Posts: 10 Forumite
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    Ok thank you one more time.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Just get a direct debit set up to repay the full amount and jobs a good un, just keep a track on what you have spent on the credit card and your current account.
  • wiseonesomeofthetime
    wiseonesomeofthetime Posts: 2,073 Forumite
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    whiteeagle2017 wrote: »
    ...oh one more think , what is the best % to use each month from the credit card ? my start limit is £1000 I read that need to be 30% of the credit limit so max £300 each month, is that right ? or it not makes any different ??

    I don't think the amount is as important as the activity.


    I use one card to pay Spotify at £9.99 which I pay off in full each month, and another to pay Netflix at £7.49 which I pay off in full each month.


    Keeps both cards active, however, the percentage is minimal.


    For example, the £9.99 is on a £4,000 limit and the other on a £8,400 limit.


    One is active for use abroad, the other as it is my longest standing card.
  • eskbanker
    eskbanker Posts: 30,938 Forumite
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    wiseonesomeofthetime wrote: »
    I don't think the amount is as important as the activity.


    I use one card to pay Spotify at £9.99 which I pay off in full each month, and another to pay Netflix at £7.49 which I pay off in full each month.


    Keeps both cards active, however, the percentage is minimal.


    For example, the £9.99 is on a £4,000 limit and the other on a £8,400 limit.


    One is active for use abroad, the other as it is my longest standing card.
    Your situation differs significantly from OP's though - you're just trying to keep some cards ticking over and already have way more credit than you need. However, OP is in credit history building mode and probably ultimately wants to get access to (a) higher limits and (b) prime cards with benefits, so is in a different situation that is likely to justify using more of their limit to demonstrate their ability to manage credit.
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