Puzzled

chazsdad

Hi
It seems that whoever you talk to about Credit Rating has a different slant on it So can I ask If given a choice between paying all of my credit card balance every month or doing so over several months which way is best for my Credit Rating

grumbler

chazsdad wrote: »

It seems that whoever you talk to about Credit Rating has a different slant on it

Because different lenders can have different views on the same baseline facts and draw different conclusions. A universal credit rating simply doesn't exist.

So can I ask If given a choice between paying all of my credit card balance every month or doing so over several months which way is best for my Credit Rating

Ask the particular lender you keep in mind, but they will never tell you anyway.
As the difference is likely to be very small and depends on many other factors the first option is better as it doesn't cost you anything unlike the second one.

StuC75

Also Banks will 'prefer' those that make them a profit - Balance in full = no Interest for lender. Steady maintaining payments = longer term profit stream..

Stability is the key, if you have maxed out the card and maintaining only minimum payments looks worse than say somone just ticking over a smaller amount on month to month expenses. The month to month change may be the same - but the risk of the higher balance going wrong is greater...

True MSE Savvyness is to pay it off in full.

Herbalus

StuC75 wrote: »

Also Banks will 'prefer' those that make them a profit - Balance in full = no Interest for lender. Steady maintaining payments = longer term profit stream..

Just to clarify, this does not mean that leaving a small amount due on your credit card so you pay interest is beneficial. Always pay what you have to in order to avoid interest. Paying interest does not mean that you are a more valuable customer.

Minimum payment markers may indicate to a lender that you can't afford repayments.
Full repayments mean you may be a reliable customer and can handle credit well.

Gromitt

StuC75 wrote: »

Also Banks will 'prefer' those that make them a profit - Balance in full = no Interest for lender

Not entirely accurate. Even if you pay off in full, you'll still make them a profit.

Someone who only pays the minimum may worry them and they may in time reduce your credit limit.

Pay your balance off in full every time and they may increase your limit.

The more you spend on the card the more they make.

Passing 3 - 5K through the card each month and paying it off in full is likely to make you best buddies with the card issuer.