Best way to use my card

bodmil

I have no problem with my credit card, balance is paid off by DD every month. But is it bad or worse for my credit history to use more of my credit? I have a 4.5k limit and usually don't spend more than 500 a month but went to 2.2k over Xmas, is that terribly naughty?

izools

Not atall, you're using your card very responsibly. Leaving it dormant or leaving it maxed out and making only minimum repayments can be a negative, but keeping well within the limit and paying in full each month is certainly positive.

Some cardholders have found that repaying each month in full, whilst only spending a tiny fraction of the credit limit, could result in your limit being cut (in line with your spending) but in your case, you do take advantage of more or the limit from time to time, which is great. This shows the creditor you can afford the whole limit so they should be less hasty to cut your limit.

All of this is very much "should" and "in other people's experiences" - nothing is set in stone - but suffice it to say you are using your card responsibly and in a way that should ensure a very good credit file helping you get the best deals in the future