Paying credit card immediately or after statement for building credit score?

BETH.SA

Hi, I am completely new to this forum so I apologise if I mess this up

I was able to get my first credit card a few months ago as I have absolutely no credit history having moved here 2 years ago and would like to build some credit history and a decent credit score.

I only ever use the credit card for things I would normally put on my debit card so I always have the money available and pay the credit card charge immediately. I checked my credit report today and under the credit card section it shows that my balance and statement history for each month have been £0. So I was wondering if this was a good thing or not? Does paying my credit card immediately and leaving me with a £0 balance when my statement arrives end up looking like I haven't used it and therefore have no 'repayment history'? Would it be better to wait for my statement and pay it off then? Or would it make no difference to helping me build up my credit history and score?

Thank you in advance!

Tixy

Hi

You need to wait until the statement is generated and then pay up in full. At the moment is it not helping you build up a credit history.

JKSandy

If you pay in full each month set up a Direct Debit to pay it in full.

Never ever pay your card before you get a statement.

BETH.SA

Thank you so much, and I thought I was being so responsible! Thank you again

planteria

the advice you have been given is good, BETH

keep doing what you are doing, but let a Direct Debit take your payment in full.

i sometimes clear my Amex account before the statement is produced, as i am impatient to be able to spend more and earn cashback....but if i do so it will not be recorded on the my credit file. we need to let the 'system' see us Borrow&Repay&Borrow&Repay

JKSandy

BETH.SA wrote: »

Thank you so much, and I thought I was being so responsible! Thank you again

You are being responsible, just too responsible lol

datlex

I wouldn't necessarily agree with leaving it until you get the statement. You can actually get more out of the card if you pay as you go.

bengal-stripe

datlex wrote: »

You can actually get more out of the card if you pay as you go.

To make payments during the monthly billing cycle, might be necessary if you have been given a tiny credit limit and your monthly spending exceeds your limit. Otherwise there is no reason not to wait for the statement and pay it then (the next day, if that is what you want to).

The OP wants to build a good credit rating. Due to the fact that she pays immediately, there is no balance due at the end of the billing month. To every company checking the OP's credit, it will appear like a card that has been issued, but never been used and just got stuck in the drawer. It doesn't demonstrate that the OP can deal with credit and is in a sound financial position that she can pay it back.

MABLE

datlex wrote: »

I wouldn't necessarily agree with leaving it until you get the statement. You can actually get more out of the card if you pay as you go.

Thats what I do!

eskbanker

Cautionary tale here!