cashback credit cards and credit score

moneysavesitself

hi i am 23 years old i use my credit card to make my every day payments so that i get the cash back and so that i get better rights when i buy things as well. but i am yet to get an mortgage. i can get access to loans really easily the bank is all ways offering me loans.

but what i want to know am i hurting my credit rating at all by using cashback cards with not having an mortgage yet or am i helping my credit rating as i am showing i can pay back debt easily ps i have an direct debit pay in full every month


cheers thank you for your help

[Deleted User]

You're helping it. It demonstrates responsible financial behaviour.

InsideInsurance

Generally you are helping it but credit scoring is complex and you need to look at the bigger picture.

If you only have 1 credit product (your credit card) in the whole of your history and you are near maxed out on it when they do the monthly report to the CRAs then you're going to have limited history and near 100% utilisation which isnt going to be looking good.

If you have a few old settled accounts, have an unused overdraft and a second unused card and even on statement day only have 30% of your limit used then you are going to look a very good risk.