Should I stop paying my credit card off in full?

JSUK_2

I avoided getting a credit card for many years, but the need to build up a credit history (for a mortgage etc in future) lead me to open one early last year. In the first month I paid a few online bookies using it, incurring £30 of charges before I noticed (rookie mistake) but have paid the balance in full every month and have rarely got to half my account limit. I also got one other card last year, which I only used to accrue the very generous introductory offer and has been dormant ever since. With this record I've taken more from the cards than they've taken from me, or can expect to take anytime soon.

However, I've since been declined for cards I expected to get. I understand that for some card providers, this makes me a bad potential customer as I'm unlikely to incur fees, and I suspect this has put some providers off. As such, is it worth only paying off the minimum for a few months in order to pay some interest and look like a more profitable proposition to banks?

nidO

No.

If you're worried about getting accepted for other cards, checking your other general credit history, credit-to-income ratio, and used-credit-to-credit-limit ratio would be far more beneficial, paying interest on your credit cards is literally just throwing money away for no benefit.

JSUK_2

I did run up an unofficial overdraft while at university which needed paying off when I dropped out (my mum paid it and I gradually paid her back) but am aware of no credit issues in the last 12 years. My credit limit on the card I use equals about 2 months wages, and my monthly payment is usually about 1/5 of the limit. Can't remember the limit of the other card I no longer use, but it's definitely less than the active card.

WannaBLoaded

Why did you expect to get the card?

They didn't accept you because you didn't meet their criteria

Maybe your other credit card shows as dormant on your file?

Ben8282

I don't really think that paying your credit card in full every month was the cause of the rejection.

mcpitman

Probably declined due to taking 2x cards out in the last year.

Keep paying them off, leave it 12 months, check your credit file and try again.

Only borrow more if you actually will use it/need to.

YorkshireBoy

mcpitman wrote: »

Probably declined due to taking 2x cards out in the last year.

I think perhaps its more to do with the circa £1K cash transactions made in the first month of card ownership!

Deadbeat

'I understand that for some card providers, this makes me a bad potential customer as I'm unlikely to incur fees'

Providers who think like that are not ones you should consider as their business model depends on charging massive interest and fees.