Credit rating as a result of credit cards

epm-84

I've heard mentioned that having credit cards with credit you never use is bad for your credit rating.

However, does having a balance on your card make any difference to your credit rating compared to having a credit card with no balance (assuming all payments are made on time)?

The_Boss

You don't have a 'credit rating'.

Different lenders and different financial products will score you differently. It is generally better to have no debt than debt, but using cards and repaying each month reflects well on you as it builds a profile.

epm-84

The_Boss wrote: »

repaying each month reflects well on you as it builds a profile.

Does it have to be a full repayment each month to do that or just be above the minimum payment?

Tixy

epm-84 wrote: »

Does it have to be a full repayment each month to do that or just be above the minimum payment?

Both will help you build up (or maintain) a positive credit history.

Having a card you repay in full each month shows a potential lender you are using credit but don't have ongoing debt (which they may need to factor in to any affordability calculations when deciding whether to lend to you).