How is my credit rating updated if I pay more than the minimum?

geordiebri_2

I've just started paying off age-old credit card balances, paying more than double the minimum monthly payment.

How is my credit rating updated if I pay more than the minimum? How do the agencies know? For example, a year ago, I was refused a loan following a credit reference check.

If I continue to 'aggressively' pay off my balances, how is my credit rating updated to reflect this?

Tixy

If you pay off your balances quicker - then you will owe less overall, which a potential lender will see when they do a credit check.

A lot of credit card companies now report detailed credit history information, which specifically flags if you are only making the minimum payment - if you pay more than that the flag does not appear.

luckylouise08

You could have a look at your credit report online and then you can see if the changes are improving your credit score. If you can, it may be worth trying to meet your monthly payments on the credit card in full, as this will make your credit rating definitely start to improve. If I were you, I'd have a look at whether having an arranged overdraft with your bank current account would cost you less to dip into than the interest on paying off your credit card? It would cost me less to use my arranged overdraft than the interest on my credit card. Explore your options. Speak to your bank as well, they could advice you what will be most cost effective for you. Good luck!

BugsyBrowne

luckylouise08 wrote: »

You could have a look at your credit report online and then you can see if the changes are improving your credit score. If you can, it may be worth trying to meet your monthly payments on the credit card in full, as this will make your credit rating definitely start to improve. If I were you, I'd have a look at whether having an arranged overdraft with your bank current account would cost you less to dip into than the interest on paying off your credit card? It would cost me less to use my arranged overdraft than the interest on my credit card. Explore your options. Speak to your bank as well, they could advice you what will be most cost effective for you. Good luck!

What are you on about.
Try not to mention CRA's worthless scores on here.