Building up my credit rating

danmarmel

According to the money saving expert, I shouldn't pay my credit card completely every month in order to build up my credit rating (To make the credit card company every month). If I have a 0% interest credit card, will I still be building up my credit rating by not paying off my credit card in full every month (not making the credit card company any money). Any knowledge would be appreciated!

SnowTiger

danmarmel wrote: »

According to the money saving expert, I shouldn't pay my credit card completely every month in order to build up my credit rating (To make the credit card company every month). If I have a 0% interest credit card, will I still be building up my credit rating by not paying off my credit card in full every month (not making the credit card company any money). Any knowledge would be appreciated!

Where on MSE did you read that poor advice?

grumbler

Unlike 'MSE', I don't think that anyone needs to pay anything to build the credit history.
Also, I believe, that the reporting cycle is normally not the same as the due date or DD cycle. So, even if you pay in full the balance isn't reported as £0.
Minimum payments are reported. That's why it's advised to pay a fraction more.

Enjoy 0% and pay a little more than minimum while it lasts.

SnowTiger wrote: »

Where on MSE did you read that poor advice?

>> Credit Scores - Bust myths & improve your score

Credit card companies may reject you for always repaying cards in full.

You might feel like a dream punter, but for credit card companies you're a nightmare. If they spot this trend, you could be rejected. The most profitable customers are those perpetually in debt, never defaulting, but always meeting the minimum repayment.

Pay off in full every month, don't use your cards enough, or always shift debt to 0% cards, and if they can spot you (it isn't always that easy), a few may reject you.

Indeed, 'myth' IMHO.

rolls99

danmarmel wrote: »

According to the money saving expert, I shouldn't pay my credit card completely every month in order to build up my credit rating (To make the credit card company every month). If I have a 0% interest credit card, will I still be building up my credit rating by not paying off my credit card in full every month (not making the credit card company any money). Any knowledge would be appreciated!

"Not paying your card in full each month" would actually have the money saving expert doing cartwheels across his desk in frustration......


However, with a card which IS 0% there's no point paying it all off - the rationale being that you can spend money it, and SAVE that money and earn interest on it.


You do, however need to make at LEAST the minimum monthly payments on time.


Otherwise (as in if the card charges interest) always pay it off IN FULL each month - or you will pay interest when you don't have to.