Using Credit Card to boost rating

sociable7

Hi,

I wanted a bit of advice on building my credit score.

I'm 25 years old, naively, I didn't take much notice of defaulting on mobile phone contracts and old student credit cards. I got the free Equifax report and can see that my file is bad and risky, 200 points?

So I found two credit cards, Aqua and Vanquis. They are there to rebuild credit, but I'm not so geared on how CC spending/paying patterns work.

I've read round the net to use it for purchases only and to pay balance off before the end of the month to avoid feed and interest. I can do that. But is it possibly to manipulate the system?

So in Month 1 I use only 30% of the money from each card then pay it off after 4 or 5 days. Then I continue to pay for small items priced at like £50, but paying it off sooner than later. Or is there no difference if I pay now or before the month? I've also set up a DD, just in case I forget.

In Month 2, I continue to use the card but spend 35%. I use the method/s to pay off the balance. I wanna use the card for mid-month transactions, then pay it off well before the end of the month. I want them to think 'this guy is using is card for everyday transactions, but then pays it off around the 22nd of the month, he must get paid then.' Or am I being too paranoid?

I wanna continue this trend for the next 6 months... but I won't ever max out the credit cards, I will be using 60% at the most.

I then want to increase the amounts, I currently have £250 and £300 available with APR set at 49% approx. Should I request the APR to be dropped or should I continue to apply for an increase, then do the same again for 6 months?

I'm currently working a full time job, and live within my means. I don't even believe in having a contract, the GiffGaff hokey cokey is ace. Therefore, personally i don't need a credit card, but I wanna buy a house soon.. or get even a long term loan so have taken 2 cards out. I wanna start improving my chances before its too late.

forgotmyname

Use the card for your monthly spends, when the bill arrives pay it in full, well before the due date. and check the payment has gone through before the date.

Pablosammy

Yeah, just whatever you do (and I'm going to make this bold and underlined to accentuate it!) make sure you set up a Direct Debit for at least the minimum payment. The last thing you want is more late payments showing up on your file, accidental or otherwise.

Ideally, just set it to pay in full by Direct Debit each month, and you'll avoid interest. Keep a a close eye on your balance to make sure you're not racking up an excessive amount.