How often should i use my credit card

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Hi, i have had my card since July. I am only using it for purchasing things when i have the money in the bank to pay off after purchasing. Just to show i am reliable with payments etc for my credit report.

I currently have a limit of £500, i thought using it and paying it off would be good for my credit report.

My report made quite a drastic leap from 773 to 932, and then down to 764. I think the drop from 932 to 764 has something to do with me using my card to buy a laptop. Even though I paid it off before its due date.

So basically should i only use my card for small purchases? Or is it ok to use it for big purchases if i pay it off the same day?

I know the credit score isn't what lenders look at, but it dropped from 932 for a reason and that is what they will take into account. I think?

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Use it regularly (eg each month) and pay it off in full AFTER you get the statement and BEFORE the payment due date.

    Your score has little to do with anything, and particularly not your buying a laptop.
  • Lamron
    Lamron Posts: 11 Forumite
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    Can i just ask why After i get the statement and not immediately after purchases?
  • [Deleted User]
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    Because otherwise if your statement balance is always zero, it will look as if you are not using the card. Which makes it hard for another lender to know if you can be trusted to use it wisely (ie spend and pay back).
  • Lamron
    Lamron Posts: 11 Forumite
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    Because otherwise if your statement balance is always zero, it will look as if you are not using the card. Which makes it hard for another lender to know if you can be trusted to use it wisely (ie spend and pay back).

    Ah right i see now, thanks for the reply:beer: Your advice has helped.
  • InsideInsurance
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    Your credit file only has a one per month snapshot of your accounts standing and can have up to three elements 1) current balance 2) balance at last statement and 3) payments made this month

    If you are paying off as soon as you are spending then this will show in the payments section and so other lenders will see you are spending if they look. Obviously its debatable if all lenders do check this or just go for the headline statement or current balance but then some may only use this.

    Ignore the scores you are getting, they are at best a very rough guide and can be very volatile.

    Personally, as someone who has rewards credit cards and travels a fair amount with work, I put absolutely everything I can onto my credit cards (knowing I have the money in the bank to pay it off) to maximise the amount of cashback and/ or airmiles I receive.
  • mayya
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    So i done this and i have a default on an account i had with debtmanagers lowel. I paid off all creditors and settled all accounts in a effort to rectify this. My credit rating did jump up from fair to good, for a few days and then jumped back down to fair
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