Question about using credit card

TriggerCut92

Basically always had a lot of money saved but never needed a credit card. Had a default on my account I never knew about which I've just cleared. Could only get a credit card with 39ish% apr.

It's got a limit of £250 but will be going up to £1000

I just want to know would it be better for my credit file if I max out the full 250 every month then completely pay it off at the end of the month, or would it better to maybe use half?

Thanks

MrJester

TriggerCut92 wrote: »

Basically always had a lot of money saved but never needed a credit card. Had a default on my account I never knew about which I've just cleared. Could only get a credit card with 39ish% apr.

It's got a limit of £250 but will be going up to £1000

I just want to know would it be better for my credit file if I max out the full 250 every month then completely pay it off at the end of the month, or would it better to maybe use half?

Thanks

I'm not sure that there is a difference to be honest, spend what you want up to your limit, just pay it off in full every single month.

I assume this is to build better credit, and thats the only reason you have it. Remember the golden rule, if you have savings pay off your card ASAP no matter what, you'll always be better off that way (more money for you).

[Deleted User]

Don't max it. Just put a couple of purchases on it a month and clear in full.

Tixy

TriggerCut92 wrote: »

I just want to know would it be better for my credit file if I max out the full 250 every month then completely pay it off at the end of the month, or would it better to maybe use half?

Make sure you wait until the statement is generated before you pay it off.

MrJester

Tixy wrote: »

Make sure you wait until the statement is generated before you pay it off.

That's a very good point I didn't quite consider. If you pay on the card then pay it off the next day, then its like it never even happened, but when they generate a statement its basically saying they owe us this much from this month, then you go ahead and pay it back and theres your positive on credit.

datlex

I wouldn't max out a card even if you are paying off in full as on the whole unless the credit card is with someone you bank with then they cannot see you have the funds to pay it. Leaving some breathing space between spending and limit shows you are not using all the credit available to you. This apparently is a positive on credit checks. (at least that is what it says on Experian credit report)