Paying off credit cards/credit score improves?

Abbymoo

Sorry, I'm not sure if this is the right forum.
Is there a set amount of credit score that settling a credit card improves your score by? Or is it dependant on how much the balance cleared is?
For instance 2 credit cards, 1 with a 2.5k limit pretty much maxed, and one with a 5.5k limit with roughly 1.9k used, both now cleared off. Will it be a set amount of score for each card or...argh, I can't word what I mean properly!

[Deleted User]

No. Ignore your credit score- it's irrelevant.

Pay off your balances, use the cards regularly, don't miss payments or go overlimit, pay in full each month and your credit rating will improve

CRISPIANNE3

Deleted_User wrote: »

No. Ignore your credit score- it's irrelevant.

Pay off your balances, use the cards regularly, don't miss payments or go overlimit, pay in full each month and your credit rating will improve

But not if you are stoozing. Only pay the min each month.

sfax

When people say "ignore your score" they are talking about the scores that people pay for from credit reference agencies. It's still important to improve your credit rating which is how you are seen in the eyes of lenders.

Don't pay the minimum, always pay slightly more (even if only £1 more) and pay on time (use a direct debit if possible).

Lenders will look at how much credit you already have, how much you are using (against your limit) and whether you are good at paying it off.

[Deleted User]

CRISPIANNE3 wrote: »

But not if you are stoozing. Only pay the min each month.

£1 to avoid a min payment marker.

Abbymoo

Thanks all
I think what I meant was...does paying off your balance completely improve your score, as opposed to just paying the minimum which would presumably just maintain the score as it is?
I need to send my brain in for a service!

sfax

Abbymoo wrote: »

Thanks all
I think what I meant was...does paying off your balance completely improve your score, as opposed to just paying the minimum which would presumably just maintain the score as it is?
I need to send my brain in for a service!

Not necessarily but as above don't just pay your minimum, always pay little bit more than your minimum payment. Just paying the minimum looks like you're struggling

If you pay off your balance and go from utilising 80% of your available credit to utilising 20% then yes, this would improve your rating (make you less of a risk to a lender) but the act of just paying off a balance doesn't necessarily improve your outlook. Depends on lots of factors

sharpy2010

CRISPIANNE3 wrote: »

But not if you are stoozing. Only pay the min each month.

As ZX81 says, don't pay the minimum, pay the minimum plus 1p. It stops a minimum payment marker being added to your credit report, which can be misconstrued as a sign of financial distress to credit scorers.

System

Thanks for posting this. I've been having this discussion with my brother, who is trying to improve his credit score. He thinks he'd be better to keep a a balance on his cc, but will gladly show him this, more likely he will believe you than me!

sergeant_cookie

I am starting to think that this credit score is a load of tosh. I have 'bad credit'. 2 CCJs and made numerous defaults when I was younger - none of which I am proud of.

However a couple of years ago I signed upto Vanquis and Capital One and got accepted for both. I spent on them and paid them off pretty quick. I then got given higher credit limits. My score gradually got better, but never brilliant. One of my CCJs disappears next week and the other in April 2014.

I have made a few applications for various credit cards this year and been accepted on them all (Tesco, Virgin, MBNA rate for life and recently BarclayCard Platinum) and all got pretty low % rates. I actually still owe BarclayCard from years gone by (paying through Bryan Carter and Co. but nearly paid off now ) but still got accepted. I transfer my balances to the best cards to obviously pay less.

I sometimes think if you apply at the 'right time', whenever that may be then you will be accepted - assuming your 'credit score' isn't diabolical.

MrSilk

sergeant_cookie wrote: »

I am starting to think that this credit score is a load of tosh. I have 'bad credit'. 2 CCJs and made numerous defaults when I was younger - none of which I am proud of.

However a couple of years ago I signed upto Vanquis and Capital One and got accepted for both. I spent on them and paid them off pretty quick. I then got given higher credit limits. My score gradually got better, but never brilliant. One of my CCJs disappears next week and the other in April 2014.

I have made a few applications for various credit cards this year and been accepted on them all (Tesco, Virgin, MBNA rate for life and recently BarclayCard Platinum) and all got pretty low % rates. I actually still owe BarclayCard from years gone by (paying through Bryan Carter and Co. but nearly paid off now ) but still got accepted. I transfer my balances to the best cards to obviously pay less.

I sometimes think if you apply at the 'right time', whenever that may be then you will be accepted - assuming your 'credit score' isn't diabolical.

A lot of people do forget that it's down to the issuing company and not Experian/Call Credit/Equifax.

They are not interested in what happened 3/4 years ago, but how you are managing now.