Credit Card - improving credit?

Oliver16

Hi

i have 2 credit cards and am about to pay them off finally.However i have read that if you keep a small balance and pay the min each month this improves you credit rating rather that its sitting at zero and not used at all?

Is this true?

Thanks

YorkshireBoy

Oliver16 wrote: »

Is this true?

No. Even if you don't use your card one month the lender still reports a 'green zero', ie payments are up to date.

However, we are about to see lenders reporting far more detail about how you manage your credit card account. Therefore, the best way to build a credit rating is to spend wisely and repay in full each month.

sarahs999

Yes, it's all about to change. As, I suspect, are many aspects of our banking culture.

Oliver16

ok so is it better to use it every month on at least something no matter how much and pay it off, or keep at zero ?

latecomer

We use our cards for all spending each month and pay off the balance in full without fail. this way you dont pay any interest and get to keep your money for a little longer in your bank/savings account.