Rebuild credit after dro

nosniboris

hi just been accepted for a "bad" credit card to rebuild my credit after a dro. (still in my six year period)


Just wondered to rebuild my credit is it just about paying the money back to the credit card on time OR is it also about how much money you spend on it and repay on time?


I.E. if I spent just £30 per month on it and then paid it back on time every month will that rebuild my credit


OR


if I spend £300 per month and then pay back on time will this rebuild my credit score quicker? or is it just the same?


thanks

SavingEnthu

Stay within your credit card limit... and pay the outstanding amount IN FULL each month.. The best way is to set up a Direct Debit..

So this way, irrespective of if you spend 30 or 300 in a month, the outstanding amount will be cleared, and you wont have interest to pay -- or alternately if you do not have sufficient funds to pay off 300 in the month, set it up to pay the MINIMUM amount at least (or a bit more than that).....

Typically, I would say, if you are in credit-rebuild mode, ALWAYS repay in full each month using a DD...
Live within your means and ensure your bank has sufficient funds to clear the Credit card bill .. you dont want to be slapped with additional fines/delayed payments..

Best of luck

nosniboris

thanks for reply. but can I ask is it all about paying in full each month without fail or is it also to do with the cards usage. does it have the effect spending 30 or 300? or is my credit rebuilt quicker by me spending more and paying in full?

sniggings

nosniboris wrote: »

thanks for reply. but can I ask is it all about paying in full each month without fail or is it also to do with the cards usage. does it have the effect spending 30 or 300? or is my credit rebuilt quicker by me spending more and paying in full?

£30 is likely to improve things, £300 is more likely to cause problems for 2 main reasons, 1, you might not have the money to pay it back on time and 2, they like to see the credit you have available to spend not all being used, so if your credit limit was £500 and you spent £300, that's getting a little to close, but spending only £30 when the limit is£500 looks better...remember, they are looking at your record to see if you are a good risk for another loan...who would you give a loan to and think the best risk?, the person maxed out on all credit they have but pays on time, or the person who doesn't make use of all the credit they have available and pays on time.