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  • FIRST POST
    • eportdave
    • By eportdave 16th Oct 16, 2:23 AM
    • 46Posts
    • 1Thanks
    eportdave
    Best way to use my credit card?
    • #1
    • 16th Oct 16, 2:23 AM
    Best way to use my credit card? 16th Oct 16 at 2:23 AM
    Just a quick question to see if i am using my credit card in the best way to 1, increase the credit limit and 2, increase my credit score and improve my credit file.

    I have a capital 1 credit card with a £200 limit. what i am doing is using it to pay for a full tank of diesel for my car. i do this twice a month which adds to roughly £110/120.
    When it comes to paying my monthly payment, i pay the full amount meaning i am back down to £0 on the card and then repeat above.

    Is this the correct way or is there a better option?

    Dave
Page 1
    • Ben8282
    • By Ben8282 16th Oct 16, 2:43 AM
    • 1,338 Posts
    • 501 Thanks
    Ben8282
    • #2
    • 16th Oct 16, 2:43 AM
    • #2
    • 16th Oct 16, 2:43 AM
    Yes you are doing the very best thing. When your limit eventually does increase continue as you are now but for larger amounts.
    Just to clarify, assume you are waiting until after the statement has been issued in order to make the payment then paying shortly after then incurring the new spend to appear on the new statement so that each consecutive statement is for approx. £120 and not 120 0 120 0.
    I am almost tempted to suggest that you increase the spend slightly to as to bring the monthly statement balance almost up to the limit, taking care of course never to exceed it. I know this will push the ratio up but you have been given a card with a ridiculously small limit which is for all practical purposes useless for normal day to day spending.
    Last edited by Ben8282; 16-10-2016 at 2:46 AM.
    • eportdave
    • By eportdave 16th Oct 16, 3:07 AM
    • 46 Posts
    • 1 Thanks
    eportdave
    • #3
    • 16th Oct 16, 3:07 AM
    • #3
    • 16th Oct 16, 3:07 AM
    Cheers for the info Ben8282
    Just on the website for my credit card and the Statement period ending is the 3rd of each month with the payment due date the 29th of each month.
    as to avoid statements looking like 120 0 120 0 etc, should i be using the card between the 3rd and 29th
    • Ben8282
    • By Ben8282 16th Oct 16, 3:18 AM
    • 1,338 Posts
    • 501 Thanks
    Ben8282
    • #4
    • 16th Oct 16, 3:18 AM
    • #4
    • 16th Oct 16, 3:18 AM
    Subject to convenient availability of funds, I would pay on the 4th or shortly after then spend again during the month so that purchases are made on every statement not alternate statements if that makes sense.
    I am making this suggestion because of the very low limit.
    Last edited by Ben8282; 16-10-2016 at 3:23 AM.
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