2 Cards (Hoping To Build Credit Am I Doing It Right ?)

lc25

Hi All,

This is something which i have searched for a long time but have never got the answer i wanted, that was until i discovered this fabulous website with loads of information and help.

I currently have a £1000 limit Virgin credit card with 0% interest until May 2011 with roughly £700 from when i purchased my car i pay £100 off it every month, plan being it will be paid off by then and i will close the account.

I also have a Capital one 34% card with a £1500 limit this currently has £70 which will be paid off next month, i had to let it roll over from last month as i didn't want to mess up my Virgin plan and the small amount of interest i can live with.

I am on the electoral roll and i have a O2 phone contract which i have never defaulted on. I have never late paid on either card and usually clear the balance straight away on the Capital one.

Something i don't do is use my credit card for everyday purchases like £80 worth of diesel every week i pay cash as i don't like using my debit card. Is this a bad move ? could i be gaining better credit and possibly something else say if i had a sainsburrys credit card ? as i always fill up at sainsburrys.

So that's how i currently work is there anything i could be doing to better myself either with nectar points/other free stuff and most importantly better my credit rating. Or have i gone about it totally the wrong way by using my Virgin card and only paying £100 off it every month ?

Any help much appreciated

Thanks LC

stephane_2

The best way to improve your credit worthiness is to have several accounts showing, mobile, credit cards, current account, have a very good repayment history, not to max out the cards, pay more than the minimum payment, be on the electoral roll

lc25

stephane wrote: »

, pay more than the minimum payment,

I have always easily paid more than the minimum amount ever since i have had the cards. Thanks for the advice i think i'm doing everything right but just felt i could possibly get more out of my situation.

izools

No sounds like you're ticking all the boxes.

The main thing to remember, including stephane's advice, is that credit scoring is a means to test someone's ability to maintain the status quo - their stability.

Changing accounts to other providers too often or moving bank / house / job too often has a negative effect on your score.

You are better off leaving everything as is, pay the Cap One in full each month (Interest...) and continue to maintain everything else. Don't take out / apply for anything else and when you need you should be absolutely fine.

Also make sure never to bounce standing orders, cheques, or direct debits, and don't incur charges on your current account, as this is also reported to Credit Reference Agencies as adverse information now.

lc25

Thanks for the advice.

Glad to hear i have got everything sort of right, is it bad that i don't use my current account that well and basically use it to take cash out then pay for everything in cash when i can ? Seems to me i could possibly make my cash work for me by getting other rewards/benefits by not paying in cash ? Or am i just totally wrong here.

Toe-Jam

izools wrote: »

Also make sure never to bounce standing orders, cheques, or direct debits, and don't incur charges on your current account, as this is also reported to Credit Reference Agencies as adverse information now.

not true, Your overdraft and how much your using, "may" be reported, and if your over it, then that is shown. Particularly with Santander.

But it doesn't show if you've bounced a direct debit or cheque, unless doing that has caused you to go over your limit.

None of my other accounts bother to report my overdraft situation.