So, just how do I go about earning a "good" credit rating?

Kavanne

never-in-doubt wrote: »

there really is no need, it could pose a hindrance doing so as you are hard to apportion risk when you never have revolving credit. its a catch 22. i'd say it is always better to have outstanding balance carried forward, even a tenner is better than zilch!

Why would the OP want to pay interest when they don't have to? It's spending money on nothing!

b3nton

I've always been credit averse and have avoided credit cards completely.
I think it's rediculous how someone so sensible with money can be punished!

If I want it, I save for it

Satnav_2

I think the OP is doing the right thing by paying off in full. I'd even go so far as to suggest getting a direct debit set up for the full amount so you can't forget to pay (make sure there are enough funds/student overdraft though).

nzseries1

never-in-doubt wrote: »

i'd say it is always better to have outstanding balance carried forward, even a tenner is better than zilch!

For 2 years I was always one of those people that left a small balance on my card, I've stopped doing it for the last year and have started paying off in full every single month; it doesn't seem to have hurt my ability to get credit (but that could of course be because I've now held a card for 3 years with no missed payments).

d00fus

I'd be surprised if leaving a small balance to carry over makes any difference. If you look at your credit report, it indicates simply whether you have made the required payments on time or late (or missed altogether), and the current outstanding balance. So if you make at least the minimum payment each month on time, provided the balance isn't excessive your credit status should be fine. Obviously, paying the entire balance each month is even better as you will not be charged interest.

RobertoMoir

JavaScript wrote: »

Hmm...

This is my problem. Everyone seems to have conflicting opinions on this exact point and it's hard to know what's best.

Then may I suggest using your new credit card to meet your needs, possibly even letting it help you enjoy life to the fullest, while not allowing debts to build up to the point where you can't clear them off in a month or (at worst) two no matter what, and treat the conflicting advice here as guidelines and suggestions rather than rules to live by. That way you'll generate a credit history without getting into trouble and maybe even enjoy yourself doing it just a little.

mrmajika

d00fus wrote: »

I'd be surprised if leaving a small balance to carry over makes any difference. If you look at your credit report, it indicates simply whether you have made the required payments on time or late (or missed altogether), and the current outstanding balance. So if you make at least the minimum payment each month on time, provided the balance isn't excessive your credit status should be fine. Obviously, paying the entire balance each month is even better as you will not be charged interest.

In my experience, this is the most accurate information posted in the thread.

I don't believe leaving a small balance on a card helps nor hinders you at all.

Lenders weight different criteria differently. For example BANK A may rate customers aged 40+ who have a modest income and small mortgage very highly, whereas BANK B may rate them lower than the 21+ high earner and large mortgage professionals. It's all a bit of a mystery really!