Improving credit rating with a credit card?

Julzee_ohh

I am currently looking to borrow between 4000 and 5000 pounds but have been declined due to my credit rating (lack of credit history) so instead applied and was approved for a credit card with a limit of 2000. Does anyone have any idea how long it should take to boost my credit rating with my credit card when spending between £150 and £300 per month on it and paying back early? Would really appreciate any information or advice!

MrSilk

6 - 8 months providing you clear the balance in full each month.

Also, whether paying the balance early or when the statement has been produced won't make any difference. I'd recommend wait until the statement has been produced so you are sure of how much to pay.

grumbler

MrSilk wrote: »

... providing you clear the balance in full each month.....

What relevance does this have?
Is paying in full better or worse than making smaller payments?
I think all providers prefer customers that don't pay in full, but stay within the limit.

MrSilk

grumbler wrote: »

What relevance does this have?
Is paying in full better or worse than making smaller payments?
I think all providers prefer customers that don't pay in full, but stay within the limit.

Depends:

1. If you make the minimum payment, then it will show on your credit report that you have only made the minimum payment

2. The interest, if it's high then the it will take longer to pay off.

3. If you keep a high balance on the card, and only pay the minimum, other lenders may suspect that you are in financial difficulty.

Mind you, if you where only paying the minimum amount, and are using near enough all of your limit, they may as well increase the limit, depends.

sfax

grumbler wrote: »

What relevance does this have?
Is paying in full better or worse than making smaller payments?
I think all providers prefer customers that don't pay in full, but stay within the limit.

I'd concur with that. Pay on time and pay more than the minimum payment but no need to pay the whole balance to build up a positive credit history. Some lenders may even be put off by the fact that you never pay any interest, and so may not pay them any