Negative on Credit Report: Payments on credit not reduced recently

datlex

On my credit report it suggests that it is a negative if you are seen not to be reducing out goings to credit. Perhaps an Experian or Call Credit or Equifax agents could advise on the following:

1) If you use a credit card to pay for things but pay it in full will this affect your credit rating

2)If you are paying a loan on a fixed monthly payment does the fact this doesn't change negatively affect your credit report.

datlex

any one know?

Thrugelmir

Lenders use the CRA data in their own way for assessing your application for the line and type of credit applied for.

Which makes the CRA's scores meaningless.

Providing you meet the contractual obligations of your credit agreements. Then the only issues are the amount you owe and the amount of credit available to you.

sfax

It's also advisable to pay more than the minimum payment, even if only £1 more, as minimum payment markers are used and can suggest financial distress (whereas the reality might be that paying only the minimum is the most profitable because you're on a 2 year 0% BT deal).

Re. paying in full, this won't necessarily have an adverse affect but lenders don't just look at who is the least risky, they also consider profit. Someone who has one card and always pays in full never pays any interest so may be less attractive to a potential lender

datlex

I always pay the credit cards in full each time. One card I use for expensive saved up for items such as a new bed last year. The other card I use regularly to pay my rent, council tax and fares (to earn cash back). So each month I spend and pay the same amount. Don't incur interest. Do you think the fact I don't counts against me for applying for things in the future should I need to?

Loan is a fixed term payment each month. I am hoping that after saving for and paying for some necessary items, that I will be able to save to pay this off a bit quicker even if only 6 months early.