Building Credit Score with Credit Card

Rufaz

Hi,

I am 2 year discharged now, I managed to get a credit card with evanquis. I have read conflicting evidence whether it is better to pay off the balance in full each month or the just pay the minimum amount each month.

What are your thoughts on this please, the only reason I am using it is to build my credit rating back up thanks.

R

Cobalt77

Pay off the balance in full each month.

Rufaz

Thanks for your reply, I have had the card for 6 months and I have only been paying the minimum payment each month, I hope this hasn't damaged my chances.

National_Debtline

Hi Rufaz


Paying the minimum payments doesn't harm your credit report as you are meeting your contractual obligations, but it does obviously entail paying unnecessary interest on the outstanding balance.


Dennis
@natdebtline

Nikacy

You gain additional points in Experian when you have credit but you doesn't use all of aviable limit.
BTW - The Experian has changed some rules for ex bankrupts few days ago - I've lost more than 30% of my credit score in one day.:(

Ginger_Princess

Nikacy wrote: »

You gain additional points in Experian when you have credit but you doesn't use all of aviable limit.
BTW - The Experian has changed some rules for ex bankrupts few days ago - I've lost more than 30% of my credit score in one day.:(

Ahh so it's ex bankrupt affected, I was really upset at the weekend so see my score drop from excellent to poor. All the work I've done to build it and its gone.

[Deleted User]

Your credit score is irrelevant, so you can safely ignore it. All that matters is the information held on your credit files.

It's very common for people to have 999 scores but still be unable to get credit, and vice versa.

A4445

At least the score is now more realistic, I have a discharged bankruptcy, lots of defaults and my score was good?!? Always thought it was a load of rubish. Now it's down to poor bit more accurate!

mwarby

Indeed, with my completed IVA (completed almost 2 years now, but IVA was only 6 months) I can do a certain amount to build good history. But it will take the full 6 years to get a decent score and acceptance level by lenders, as the IVA and defaults are weighted so heavily (I think)

We can't control the weightings or the past, but we can try to
- ensure past info is accurate
- manage new credit as best we can

The score that give you will vary lender to lender, but hopefully moving in right way

OP - Since coming out of IVA I've never given a penny of interest to a lender, my noddle score varies from 1/5 to 2/5