Best Way To Manage A Credit Card?

nilla

Needing to get our credit rating sorted we got a Captital One credit card, there is only £200 limit on it and we have spent £120 on it, we would like our credit limit raising at some point so my question is do we pay the whole amount off each month and that way they wont get any interest or do we leave a small amount outstanding so we do pay a bit of interest.
Confused as which to do to hopefully get a credit limit raise

CLAPTON

obviously you pay in full each and every month to avoid paying interest

set up a DD so you never forget.

IrishGypsy

But that might not mean that their internal score/limit improves if they clear the balance in full every month. Card companies prefer profitable customers to non, and clearing it off in a set number of 'chunks' (say 6 months worth) might be a price worth paying in the longer term for their credit file and potentially their limit.

I used this method myself to move from a disasterous credit to top-tier cards over a number of years. Setting up a DD to pay the minumum and then a Stabnding Order/Bill Payment for the rest of the 'chunk' each month would automate the process in a similar way and also ensure they never miss the minimum payment.

nilla

Thanks I will set up a DD for the minimum then pay chunks through the month, we would like a high credit limit in case of emergencies so hopefully by doing the above this may happen eventually

CLAPTON

IrishGypsy wrote: »

But that might not mean that their internal score/limit improves if they clear the balance in full every month. Card companies prefer profitable customers to non, and clearing it off in a set number of 'chunks' (say 6 months worth) might be a price worth paying in the longer term for their credit file and potentially their limit.

I used this method myself to move from a disasterous credit to top-tier cards over a number of years. Setting up a DD to pay the minumum and then a Stabnding Order/Bill Payment for the rest of the 'chunk' each month would automate the process in a similar way and also ensure they never miss the minimum payment.

nonsense

CC companies make money on every transaction by charging the retailer a fee.

there is no evidence that leaving silly amounts of money on the card each month and paying interest 'increases' your score with the CC company.
It simply shows you have insufficient money to pay in full

Maestro.

CLAPTON wrote: »

nonsense

CC companies make money on every transaction by charging the retailer a fee.

there is no evidence that leaving silly amounts of money on the card each month and paying interest 'increases' your score with the CC company.
It simply shows you have insufficient money to pay in full

and if what I read on here rings true, holding big balances on the card for a number of months is just likely to get your interest rate put up!