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  • FIRST POST
    • whiteeagle2017
    • By whiteeagle2017 10th Jul 17, 12:48 PM
    • 5Posts
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    whiteeagle2017
    Improve Credit Score with CC
    • #1
    • 10th Jul 17, 12:48 PM
    Improve Credit Score with CC 10th Jul 17 at 12:48 PM
    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
Page 1
    • zx81
    • By zx81 10th Jul 17, 12:53 PM
    • 13,139 Posts
    • 13,439 Thanks
    zx81
    • #2
    • 10th Jul 17, 12:53 PM
    • #2
    • 10th Jul 17, 12:53 PM
    my credit score is very pure and I will like to start to improve it
    Originally posted by whiteeagle2017
    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
    • By whiteeagle2017 10th Jul 17, 1:21 PM
    • 5 Posts
    • 0 Thanks
    whiteeagle2017
    • #3
    • 10th Jul 17, 1:21 PM
    • #3
    • 10th Jul 17, 1:21 PM
    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
    • By tempus_fugit 10th Jul 17, 1:24 PM
    • 187 Posts
    • 219 Thanks
    tempus_fugit
    • #4
    • 10th Jul 17, 1:24 PM
    • #4
    • 10th Jul 17, 1:24 PM
    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 it's forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.
    • whiteeagle2017
    • By whiteeagle2017 10th Jul 17, 1:42 PM
    • 5 Posts
    • 0 Thanks
    whiteeagle2017
    • #5
    • 10th Jul 17, 1:42 PM
    • #5
    • 10th Jul 17, 1:42 PM
    Excellent thank you very much!!

    Kind regards
    Adrian
    • whiteeagle2017
    • By whiteeagle2017 10th Jul 17, 4:06 PM
    • 5 Posts
    • 0 Thanks
    whiteeagle2017
    • #6
    • 10th Jul 17, 4:06 PM
    • #6
    • 10th Jul 17, 4:06 PM
    ...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 ??
    • zx81
    • By zx81 10th Jul 17, 4:12 PM
    • 13,139 Posts
    • 13,439 Thanks
    zx81
    • #7
    • 10th Jul 17, 4:12 PM
    • #7
    • 10th Jul 17, 4:12 PM
    On a low limit, it's not so important. Around 50% would be fine though, especially if you're clearing in full.
    • whiteeagle2017
    • By whiteeagle2017 10th Jul 17, 4:17 PM
    • 5 Posts
    • 0 Thanks
    whiteeagle2017
    • #8
    • 10th Jul 17, 4:17 PM
    • #8
    • 10th Jul 17, 4:17 PM
    Ok thank you one more time.
    • DCFC79
    • By DCFC79 10th Jul 17, 11:58 PM
    • 29,945 Posts
    • 18,967 Thanks
    DCFC79
    • #9
    • 10th Jul 17, 11:58 PM
    • #9
    • 10th Jul 17, 11:58 PM
    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.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • wiseonesomeofthetime
    • By wiseonesomeofthetime 11th Jul 17, 8:55 AM
    • 87 Posts
    • 41 Thanks
    wiseonesomeofthetime
    ...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 ??
    Originally posted by whiteeagle2017
    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
    • By eskbanker 11th Jul 17, 11:11 AM
    • 5,466 Posts
    • 5,269 Thanks
    eskbanker
    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.
    Originally posted by wiseonesomeofthetime
    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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