Credit Card to Improve Credit rating

lhead123

Hi

I've got a credit card that I'm using to try to improve my credit rating.

I have a couple of questions:

Is it better to wait till the statement has been issued before paying it off in full? Or is it better to pay it mostly off before the statement and just leave 10-20% of the balance for when the statement is generated and then pay the rest off?

I keep reading conflicting answers as to what is best...

Also the limit is very small at the moment - only £200, if I want them to increase it I read you should use it up nearly to the full limit each month and then pay it off after the statement...is that right?

Thanks

L

Tixy

Is it better to wait till the statement has been issued before paying it off in full? Or is it better to pay it mostly off before the statement and just leave 10-20% of the balance for when the statement is generated and then pay the rest off?

How much are you spending on the card a month currently? If you are spending less than half the limit then the above 2 options are likely to makes very little difference to how another potential lender would view your file.

Also the limit is very small at the moment - only £200, if I want them to increase it I read you should use it up nearly to the full limit each month and then pay it off after the statement...is that right?

Different cards appear to have different policies.

CLAPTON

wait until you receive the bill and then pay in full ; otherwise the card may look as if it isn't being used on the credit reports

I would avoid running the total too near your limit just in case you make a mistake and go over the limit which is bad news

lhead123

Currently I'm putting about £175 a month on it, stopping at that point and then paying it off as soon as the statement is generated (even though i already have the money put by to pay it).

I have an app for the credit card on my phone and use YNAB so there is n chance of me going over the limit. Currently I put food shopping and Petrol spends on there rather than lots of little bits so I know exactly how much is waiting to clear.

Looks like my best bet is to carry on waiting for the statement and then paying it off in full then x