Every Little Helps?

JayneTay

Would it help my credit rating if every month I paid the balance off my credit card and used it to do my online food shopping?

I won't be paying much off it, but will obviously be paying it off every month, then starting again.

Will this be a good step towards building my credit rating or not?

Its the only credit card I have and I only have £200 remaining on it.

guesswho2000

Not quite clear what you're saying here? You have an outstanding balance on this card and are asking whether using it for shopping (let's say £200 per month for arguments sake) then repaying the full £200 plus a bit of the outstanding balance?

If so, it won't make a difference, as long as you're repaying the existing balance as it is then it'll be doing its job as far as improving your rating goes.

In fact, using it and repaying what you use plus a bit will actually cost you more, as you'll be paying interest on your additional purchases from date of purchase until repaid, since you're not clearing the balance in full each month.

Once you've got it to zero, then use it for all normal spending and repay in full, you'll be borrowing for up to 56 days for free, plus keeping your account active and building on those green zeros!