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How much to spend.....
Alexiaonfire
Posts: 3 Newbie
in Credit cards
Hello, me and my boyfriend recently got a credit card each to improve our credit scores (were hoping to apply for a mortgage in the next 12-18 months).
His credit score isn't great, but following the Money Saving Expert website he's got a Barclaycard Initial with a £400 credit limit.
Mines not bad but I do have a CCJ, so I've got a Capital One Classic card with a £1000 limit.
I've set-up direct debits on both these accounts to them pay off in full when a new statement is issued.
My question is does it matter how much we spend on these if we want to improve out credit scores?
Ideally I would like to just spend a small amount on them, my boyfriend is thinking of just using his for fuel, which would be around £70-£100 a month.
I was thinking about spending a similar amount on mine but as the credit limit is higher, would spending more increase my credit rating more?
I appreciate any advice on this!
Alexia
His credit score isn't great, but following the Money Saving Expert website he's got a Barclaycard Initial with a £400 credit limit.
Mines not bad but I do have a CCJ, so I've got a Capital One Classic card with a £1000 limit.
I've set-up direct debits on both these accounts to them pay off in full when a new statement is issued.
My question is does it matter how much we spend on these if we want to improve out credit scores?
Ideally I would like to just spend a small amount on them, my boyfriend is thinking of just using his for fuel, which would be around £70-£100 a month.
I was thinking about spending a similar amount on mine but as the credit limit is higher, would spending more increase my credit rating more?
I appreciate any advice on this!
Alexia
0
Comments
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Spend once a month. Get statement. Pay in full. Repeat.0
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Amount (barring just spending silly like a tenner a month) doesn't matter - buy, pay off in full via DD, rinse repeat.
Ignore the "score" - these are worthless, the data is all that matters.
With a CCJ and other negative factors like late payments, defaults etc the longer you can leave it, the more of a deposit you can get and a skilled broker you can do the mortgage but don't expect a year of paying off a CC in time to outweigh serious negative factors - so be realistic and good luck with the future.Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
0 -
I agree that with a CCJ renting and saving for a bigger deposit is likely to make more financial sense than taking an expensive (because of the CCJ) mortgage.0
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