Got £250 credit limit - how much should I use?

Izzy123456

I finally have my Vanquis card in my hands. I'm so pleased to have the chance to rebuild my credit.

I read on another thread that having too much available credit unused lowers your credit score.

So ideally, how much of my £250 limit should I use each month (and pay off in full) to improve my credit score best?

thanks a lot,
Izzy

tigerfeet2006

As much as you definatly know you can pay off in full each month and is not going to cause you problems.

Izzy123456

I could use any amount from £1 to £250 and pay off in full without problems.

How much of the £250 limit should I use to improve my credit score best?

nuttyp

I used to use around £150 per month, remember not to go over the limit agreed at any time as it has major charges attached to it. My statement cut off date is the 8th every month but they dont take the amount until the 20th, so between these dates you need to be careful as not to go over the agreed limit.

Hope this explains it!!

NorthernSilver

like tigerfeet said as much as you can definatly pay off.

JimmyTheWig

I don't think it really matters.
However much you use it within the limits each month you'll get a nice tick on your credit report.

I don't think that £250 would count as too much unused credit in anyone's book.

JimmyTheWig

Oh, and remember to only use it for things you would buy anyway (e.g. petrol, weekly shopping). Don't just buy things because you've got your card in your pocket and it will help your credit score!

skylight

Regularly and any amount. Make sure you can pay it back in FULL so there are no interest payments (ouch...) and get a direct debit set up to cover this (you can set up minimum or full payments, but can also pay extra each month directly if you want to).

After some months, they will up the credit limit if you keep the account in good order (I'm up to £3k now. oooo-er...) and the higher the limit, the best his is for your credit score.

Remember - this alone does not give you a good credit rating. A clean up of your files does that plus the BR dropping off in 6 yrs!

Izzy123456

nuttyp wrote: »

I used to use around £150 per month, remember not to go over the limit agreed at any time as it has major charges attached to it. My statement cut off date is the 8th every month but they dont take the amount until the 20th, so between these dates you need to be careful as not to go over the agreed limit.

Hope this explains it!!

Thanks everyone, very much. I appreciate it!

Nutty, that is an excellent piece of advice. My DD is set up to pay in full, but I didn't realise the date gap.

I think I'll end up putting just £25 a month or so on groceries on the card, so I'll have 90% credit unused.

I'm over 6 years and BR off, files cleaned thank goodness.
Here to all of us going onwards and upwards from here :beer:
Izzy

tomshaw

Hi guys. I don't know if I'm in the right place and this is my first ever post. I use checked my credit scores which are low. Equifax is 283 and Call Credit 334. Can anyone tell me is this is pro/very poor etc? How many points do I need to get to good?

IF

tomshaw wrote: »

Hi guys. I don't know if I'm in the right place and this is my first ever post. I use checked my credit scores which are low. Equifax is 283 and Call Credit 334. Can anyone tell me is this is pro/very poor etc? How many points do I need to get to good?

Hi tomshaw and welcome to the forums. If you are not bankrupt I would post this question on the DFW Board too . You will get more help and answers there.

The Debt-Free Wannabe Board - Click here

Best wishes
If...x