Shiny new credit card...

Tammy2

It's a dreadful vanquis one, but I hope to use it to improve my credit report(s).

What's the best way of doing it? Would £50 a month, paid off before the interest goes on, be sufficient? Or do I need to spend more on it?

Fruit_and_Nut_Case

Tammy2 wrote: »

It's a dreadful vanquis one, but I hope to use it to improve my credit report(s).

What's the best way of doing it? Would £50 a month, paid off before the interest goes on, be sufficient? Or do I need to spend more on it?

That would be good. Better still, set up a Direct Debit for the full amount each statement cycle.

bsms1147

Only buy what you would have bought anyway, pay it off in full, and between the date the statement is produced and the date payment is due.

It's not the amount you put on it that matters, but the fact you are using it and paying it off regularly.

Mirno

There's a fair bit of guess work involved in what's best for credit scoring (partly because every company has their own algorithm, and it's a secret).
Things I've heard (and make sense at least on some level).
Paying in full is good.
Paying more than the minimum is OK (although you will incur interest, but it's better than paying the minimum).
Using the whole limit is bad - I've heard both 50% and 70% as maximums of limit (spending less is also fine!) being the tipping point.

There will probably be others, but those are the 3 I've heard. As I say, it's difficult to prove one way or another whether they're valid "rules" or just superstition!

Foxy-Stoat_3

What we do know is;

Making regular payments is GOOD for credit history.
Paying high interest is BAD for your bank balance.

Pay the full amount when your statement comes in, not before.

Tammy2

Thanks all.

Looks like a couple of food shops a month ought to do the trick.

So, wait for the bill and then pay immediately, to be safe?

thebritishbloke

I used my first credit card as a fuel card. Just put your petrol on it, and have a direct debit set up to pay it in full every month. So long as the direct debit is set up, and there's money in your account to pay it, you're not liable if something goes wrong.

Tammy2

Thanks thebritishbloke - I will look into that.

Dobbibill

I agree with others about setting up a DD to pay off CC. It only takes a little bit of forgetfulness for 1 day and that can be the difference between improving your credit report or putting you back to square one.

Tammy2

Direct Debit set up

ionuttd

hi, sorry to hijack OP thread, I'm looking to get a new credit card, still early stages of researching and looking up info but can anyone point me to which of Natwest, Nationwide of First Direct has the best deal on a credit card.
Looking to use it to improve my credit score but thats not the main reason, would use it for shopping(the idea of 0% apr on shopping sounds good)
I guess i could live without it but looking to get one as ive heard the benefits outstrip the cons.
Many thanks.