PLEASE HELP best use of credit building cards

Gettingthereslowly25

Hi all! Basically I got into a lot of debt years ago and decided to take on some credit building cards but so far they do not seem to be helping! Basically i use them every month mostly to the max, they are only 300 between them! I have de set up to pay the balance in full!

My concerns are these:

I mostly use them upto a week before the statement date but the full amount is never paid, why is this? I don't want to be paying Hugh interest on them!!

Second every time I check my credit file it seems to be having a negative affect because it says that I'm using a lot of my credit? I know I'm using it but I'm paying off in full every month , well supposed to be anyway!!

I know this may not make any sense but if anyone can shed some light on this I will be eternally great full!!

Many thanks Chris

[Deleted User]

Don't spend up to the max. It makes you look desperate.

If you have a full pay DD, then it will take the full amount as at the last statement. It won't take payment for transactions after that statement.

grumbler

Gettingthereslowly25 wrote: »

... I have de set up to pay the balance in full!

My concerns are these:

I mostly use them upto a week before the statement date but the full amount is never paid, why is this?

Really, why? I have no idea...

Are you sure about the DD settings? What do your statements say about this?

Second every time I check my credit file it seems to be having a negative affect because it says that I'm using a lot of my credit? I know I'm using it but I'm paying off in full every month , well supposed to be anyway!!

The number you see is meaningless.
Generally, it's good for (credit used)/(credit available) ratio to remain within 50%, but for small credit limits this makes no sense really to aim for this.

Gettingthereslowly25

grumbler wrote: »

Really, why? I have no idea...

Are you sure about the DD settings? What do your statements say about this?

I'm not too sure, I set it up years ago but I've only really just started using them! Basically I was under the impression that I would use the card and then the full amount would just be taken by dd! Then this would be shown on credit expert?? Basically this month I had a balance of £147 on capital one, the took £137 as dd then updated the balance on credit expert as £147 on the 8th...

The number you see is meaningless.
Generally, it's good for (credit used)/(credit available) ratio to remain within 50%, but for small credit limits this makes no sense really to aim for this.

So I shouls just keep maxing them or just minimise to £75 on each?

Gettingthereslowly25

Sorry Im not too good with this forum at the minute! Posted my reply under the quote! ��

CLAPTON

Gettingthereslowly25 wrote: »

So I shouls just keep maxing them or just minimise to £75 on each?

spend to about 50% -70% of your limit and pay in full.

redux

If you're paying in full but still being charged interest, maybe you are paying a day or two too late after the date shown on the statement, so look into this and fix it to avoid further interest.

As for these improving your credit rating, it will be gradual, so don't get yourself wound up and look at your file every month. Just keep things going steady for a few months.

Gettingthereslowly25

CLAPTON wrote: »

spend to about 50% -70% of your limit and pay in full.

This is my problem I pay pay dd but capital one and vanquis don't seem to be taking the full amount? I'm not sure if it's the way I'm using the card or just them trying to make some money using the interest?

grumbler

Gettingthereslowly25 wrote: »

I'm not too sure, I set it up years ago but I've only really just started using them! Basically I was under the impression that I would use the card and then the full amount would just be taken by dd!

IIRC, DDs get cancelled automatically after 13 months of inactivity.
Check what the statements say and then set the DDs up again if needed.
Don't rely on a DD unless you see the statement clearly saying that the payment will be collected in full by the DD.

Also, beware that the interest will not be waived for the first month you pay the balance in full. So, cut CC spending to minimum until you know that you don't incur any interest.

redux

Gettingthereslowly25 wrote: »

This is my problem I pay pay dd but capital one and vanquis don't seem to be taking the full amount? I'm not sure if it's the way I'm using the card or just them trying to make some money using the interest?

Oh. In that case talk to them to change the setting to collect the full amount, or on some accounts you can do this yourself online.

Gettingthereslowly25

Thanks for all the replys guys! I've looked closely at my statement and they get produced on the 8th of the month and my payment comes out on the first I think this is where in going wrong!!?