Best way to re-build credit rating?

emmmski

Hello,
As part of my plan to repair and improve my credit rating I applied for a Capitol one credit card and was accepted. It sounds silly but I'm really nervous about it, I was very bad with credit in my youth and not having had any for any years I'm worried I'll slip back into my old ways if I'm not careful. At first I thought I would simply cut the card up when it arrives to avoid temptation but having read up a bit I gather that having it is not enough. in order to improve my credit rating I need to use ( and pay off) the card on a regular basis?
So just some advice really on the best thing to do, I'm thinking literally buy one thing on it per month ( low value) and then pay it straight off? Will that suffice until I'm confident as good practice until I'm certain I can trust myself?

Thank you in advance

CLAPTON

only you can decide whether you can trust yourself

but to build up a credit rating (why do you want to?) it's best to use the card for things you anyway buy (maybe petrol ) then wait until the bill arrives, then pay the bill in full (set up a DD for the full amount so you never forget).

emmmski

CLAPTON wrote: »

only you can decide whether you can trust yourself

but to build up a credit rating (why do you want to?) it's best to use the card for things you anyway buy (maybe petrol ) then wait until the bill arrives, then pay the bill in full (set up a DD for the full amount so you never forget).

Hello and thanks for replying.

I want to move house in the next year or so ( renting) so will need a credit check for that. Even further into the future I'd like to buy a house one day so need to have good credit. I think I've learnt my lesson ,it's just the thought of a cc with £1000 limit is making me nervous, I'm hoping that's a good sign though.
Thanks for your advice, is just one transaction per month enough? Or is it better to use it several times through each month and then pay it off?

Emmski

CLAPTON

I'm not really sure about the number of transactions but it's important to use it regularly, then wait until the bill arrives and then pay in full.

In all honesty, if you are seriously thinking of buying a property you must develop some financial skills including learning to save money and to budget properly and to handle credit.

good luck

jamesd

Best is lots of normal usage with you tracking how much you spend and keeping the money around to clear it on time by direct debit. The usage level helps but not as much as the regular use and on time payments every time. Getting used to tracking what you spend and what you'll need to pay is part of your own learning to be a good user of credit.

emmmski

Thanks for the advice both, the proof is in the pudding I guess time to be a grown up