Credit card confusion

hodge263

Good evening folks,

Yet another query I am hoping you can help me with. Many thanks for your help with my previous questions so far.

I have a credit card with a small limit of £150 and the plan was to use it for a small purchase every month such as petrol and pay off in full to show responsible borrowing. I hardly use it though as have no idea when to pay the balance and end up paying it off the day after I make a purchase out of fear! Is this a waste of time? Should I wait for the card statement to come through showing the balance and then pay in full before the due date?

Any answers gratefully received.
Anna

owlet

You are on the right track :-)

Use it for up to about £40 then wait for the statement.
Pay it after the statement has been generated and a few days before the payment date.

The best thing is to set up a direct debit for automatic full payment, then it won't get missed.

If you pay it before the statement is generated, it doesn't benefit you.

hodge263

Thank you so much

leighblue

The other option is to set up the direct debit payment to equal the balance not the minimum payment

I did this with Vanquis when I took their card last year. I spend about £100 a month, it is then cleared the following month in full. They have upped my limit from an initial £250 to £1500 and have just reduced my interest rate again (although I have never paid any interest or charges)

In the long run this is the best option for improving your credit file, in addition to ensuring that the file is fully cleaned up