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  • FIRST POST
    • Electrum
    • By Electrum 2nd Dec 16, 10:40 AM
    • 175Posts
    • 58Thanks
    Electrum
    Best way to rebuild credit score
    • #1
    • 2nd Dec 16, 10:40 AM
    Best way to rebuild credit score 2nd Dec 16 at 10:40 AM
    Is the Luma card good for rebuilding credit? If I pay it off every month ontime?
Page 2
    • Anthorn
    • By Anthorn 5th Dec 16, 8:01 PM
    • 2,973 Posts
    • 767 Thanks
    Anthorn
    I don't think either method affects ones credit file adversely. I think they're both beneficial means to keep your credit history in the green. It could be argued that it is however safer to pay the balance in full each month, so as to keep on top of things.
    Originally posted by Stigy
    Ok let's consider another angle, that of the minimum payment marker: It's said on MSE and elsewhere to avoid the minimum payment marker and various objections to it are posted.

    Ok if we pay more than the minimum payment we don't get the minimum payment marker. But equally if we completely miss the payment and don't pay anything at all we don't get the minimum payment marker.

    The absence of the minimum payment marker creates doubt in the lender which could be so great as to have an application referred so that a real person can have a look at the account history.

    On the other hand the minimum payment marker shows that we have paid the minimum payment and we are keeping to the terms of the agreement. So the minimum payment marker actually improves a credit history.

    So now that's two fallacies, paying off the full balance and avoiding the minimum payment marker.

    marker is the new MSE word of the moment.
    I don't think and I know I don't think so therefore I am. At least I think so. But hold on I don't think ... er ...
    • Electrum
    • By Electrum 14th Mar 17, 1:11 PM
    • 175 Posts
    • 58 Thanks
    Electrum
    No. I pay the full balance each month and it makes no difference. What you might find is that you won't be offered an increase in your credit limit if you only spend 10% of your available limit each month as it appears you don't need it. Of course you could spend 90% and the creditor think you can't handle an increase I guess? You cam't usually request an increase in credit either. However it does work in your favour the more available credit you have, as long as your use is relatively low/mediocre. I had a Vanquis card with an initial 200GBP limit, over time this was increased to 1000GBP. I then got a Capital One card with a base limit of 2k. This is more than enough as far as I'm concerned. I use both regularly but pay them off each month in full, using them for things such as fuel usually.
    Originally posted by Stigy
    Can anybody else clarify, what is the best way to get an increase in available credit? Is it best to use about 10% of your allowence everry month or 90% or somewhere in between?
    • alewin
    • By alewin 20th Mar 17, 9:27 PM
    • 15 Posts
    • 11 Thanks
    alewin
    Does it matter about the timing when making the payment, minimum or otherwise. Straight away when the statement is received, or just before the due date normally three to four weeks later.

    Just wondering because the credit reports are updated monthly and if payment was made straight away wouldn't it always show a zero balance. If payment was made just before the due date then the report would show a balance which is then cleared the next month.

    I am thinking rubbish.
    • zx81
    • By zx81 21st Mar 17, 5:22 AM
    • 10,798 Posts
    • 10,710 Thanks
    zx81
    Anytime between receiving the statement and before the due date.
    • babyishcare
    • By babyishcare 21st Mar 17, 5:47 AM
    • 1 Posts
    • 0 Thanks
    babyishcare
    Making your credit payments on time is one of the biggest contributing factors to your credit scores. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.
    • Dobbibill
    • By Dobbibill 21st Mar 17, 6:23 AM
    • 2,028 Posts
    • 3,146 Thanks
    Dobbibill
    You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.
    Originally posted by babyishcare
    If a DD is set up, you can normally choose for 1 of 3 options.

    1) minimum payment
    2) payment in full
    3) a set amount

    If there is any CCs out there that don't offer the 3rd option, there's always a SO which would achieve the same.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    If you always do what you've always done,
    you will always get what you've always got!
    • aeclubwoi
    • By aeclubwoi 21st Mar 17, 7:11 AM
    • 1 Posts
    • 0 Thanks
    aeclubwoi
    Thank for your idea. lol
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