Credit Building credit card - how much to use?

Thom_Atkinson

Thanks for your 4 suggestions Candyapple - helpful to see a summary. My question is really just about number 4. I have a DD setup to pay the credit card bill. I'm just trying to discover how much to use the credit card and whether my usage of it affects the likelihood or the extent of any mortgage I might be offered.

Candyapple

Your usage of the card won't affect getting a mortgage.

What would affect it is if you ran up debt on it and just left it there. i.e. say your card limit was £5k and you ran up £4.5k debt and just paid off the minimum every month, this debt would be taken into account when calculating your mortgage offer and reduced accordingly.

It doesn't matter whether you spend £10 per month or £1,000, as long as you clear the balance by DD every month it is the green zeroes that count.

Thom_Atkinson

Candyapple - thanks so much, that's exactly what I was hoping - much appreciated.

Thrugelmir

Use the card when you need to for the purpose it was designed for.

Dandytf

I used -50% of 200 on cap 1card -paid in full monthly.

Only once I went above 50% which I paid over 2 months.

I got a limit increase this year.

Try and get used to paying in full -though if struggling financially theres not harrm in paying over 2-3 moths (though interest kicks in)

A4445

So I have a £400 limit on my Barclycard Initial, so to maximise the chances of a credit limit increase I should be spending around £100 a month and pay off in full? Would going up £200 a month be ok?

Dandytf

50% wouldn't be a problem if paying in full

Theres no rule to state you have to use it every month.

chuckley

on what grounds must you only use x% of the limit?

what proof is there that use of anything over that is a negative?

And who said this is a criteria for increases?!

A4445

chuckley wrote: »

on what grounds must you only use x% of the limit?

what proof is there that use of anything over that is a negative?

And who said this is a criteria for increases?!

There is so much conflicting information out there!

darkidoe

Doesn't matter how much u use. Main 3 rules to follow:
1) Stay within credit limit
2) Pay in full
3) Pay on time

If you can follow these rules, your credit history can only get better as time passes.