Questions about the green 0's we all want...

digitalphase

I have started 4 accounts (3 credit cards, 1 catalogue) in an effort to rebuild my credit rating.
I started them last month so none of them show on my file yet.

My questions are:

1. How long after I've paid (via direct debit) my bill, will it take to show on my credit file as a green 0?
2. Do I have to use each account every month to get a green 0 every month?
3. What would happen if I made a transaction every other month? Or I could keep a small balance on there each month to accrue a small amount of interest?

I am not 'properly borrowing' because I cannot afford it at the moment, I am only using the cards for things I have to buy anyway on my debit card. Just bought underwear with catalogue, which always comes in handy :D

Would be great if some knowledgeable folk could answer, I'm sure some others who have forgotten how credit cards work, or newbies to credit, will also find it useful

YorkshireBoy

1) Depends on the lender, but most (all?) report once a month.
2) No.
3a) See 2 above.
3b) Is that a serious question?

There's lots of information on the Experian (and Equifax) website, particularly...

http://experian.metafaq.com/resources/experian/Downloads/Credit_report_explained

digitalphase

Thanks. Yes they are all serious questions. When I said a small amount of interest, I'd be willing to pay the odd few pence interest for keeping a small balance on the card if I had to do it to keep my account active. I'd rather just use each card every other month!

I'll have a read of that link.

Simon_Preston

If you can pay off the card in full then do it. Else you're just needlessly costing yourself money. Use the cards to buy your usual groceries/petrol/etc that you would on a debit card each month then pay it off when the statement comes through.

digitalphase

OK thanks. Though if I don't use one card for a month, will I still get a green 0 for that month as my account is 'up to date'?

YorkshireBoy

digitalphase wrote: »

When I said a small amount of interest, I'd be willing to pay the odd few pence interest for keeping a small balance on the card if I had to do it to keep my account active.

Firstly it's not necessary, and secondly that "odd few pence" often results in a 50p (or £1) minimum interest charge...that's up to £12 a year!

What I'm trying to say is it's not necessary to 'buy' a credit history.

YorkshireBoy

digitalphase wrote: »

Though if I don't use one card for a month, will I still get a green 0 for that month as my account is 'up to date'?

Answered in my first reply (question 2). The "green zero" simply means "payments are up to date".

Brian1966

digitalphase wrote: »

OK thanks. Though if I don't use one card for a month, will I still get a green 0 for that month as my account is 'up to date'?

Hi, yes you will get your green zero regardless..
Just use your cards as and when, same with Next account.
Be very surprised if your Vanquis hasn't already reported first zero, used or not..mine did
Hope this helps :T

ElkyElky

MMM green zeros. :smileyhea

digitalphase

Thanks for all replies. That's cleared things up in my mind

Vanquis haven't set a direct debit up yet according to my online banking, but Aqua and Cap 1 have, so I phoned V today to confirm it had been set up and it has.

I'll check my report and see if V are on there, they weren't when I last checked though. Interesting post Brian

digitalphase

Brian1966 wrote: »

Be very surprised if your Vanquis hasn't already reported first zero, used or not..mine did
Hope this helps :T

Checked my Experian and it's not on there. Was yours on Experian or Equifax?