High Balances:

tomxlisa

I have 2 credit cards and a store card and sometimes I will carry balances on these, I only have low limits on them at the moment so the minimum payments are small and so is the interest so I carry balances on some months, the thing is this has shown on my credit report now as using high percentages of my cards, is this something to worry about or will it not affect me in a negative way?.

CLAPTON

tomxlisa wrote: »

I have 2 credit cards and a store card and sometimes I will carry balances on these, I only have low limits on them at the moment so the minimum payments are small and so is the interest so I carry balances on some months, the thing is this has shown on my credit report now as using high percentages of my cards, is this something to worry about or will it not affect me in a negative way?.

why do you pay this interest

pay in full each month and then start to save so you never need to go into debt again

Superscrooge

If you are only using a small proportion of your available credit. This is regarded as a positive because it shows you are not desperate for credit and don't appear to have money problems.

Conversely using high percentages of your available credit is regarded as a negative.

If the balances are only small I would reduce them as much as you can. You will pay less interest and improve your credit history

tomxlisa

CLAPTON wrote: »

why do you pay this interest

pay in full each month and then start to save so you never need to go into debt again

I use my cards to gain a credit history, I don't really see it as getting into debt as I can afford to pay it all off immediately i just sometimes choose to carry balances as the interest is hardly anything on such low credit limit.

tomxlisa

Superscrooge wrote: »

If you are only using a small proportion of your available credit. This is regarded as a positive because it shows you are not desperate for credit and don't appear to have money problems.

Conversely using high percentages of your available credit is regarded as a negative.

If the balances are only small I would reduce them as much as you can. You will pay less interest and improve your credit history

Just as I thought really as the percentage is high, so will get it reduced so I am not using such high percentages of the balance.

redpete

tomxlisa wrote: »

I use my cards to gain a credit history, I don't really see it as getting into debt as I can afford to pay it all off immediately i just sometimes choose to carry balances as the interest is hardly anything on such low credit limit.

Rather odd to give the CC money that you don't need to for no discernible benefit.

bearcat16

Keep asking for credit limit increases, and gradually the credit utilization % will go down.

I got a nationwide select credit card 4 years ago with a £3,500 limit, and I kept requesting increases. Now the limit is £13,500.

However, as others have said, stop paying interest when there's no need to. Pay off the balances in full at the end of each month.

20aday

OP what are the limits on your cards?

I agree with the replies above; the interest might be minimal but it's daft to pay any at all when you don't need to.

CLAPTON

tomxlisa wrote: »

I use my cards to gain a credit history, I don't really see it as getting into debt as I can afford to pay it all off immediately i just sometimes choose to carry balances as the interest is hardly anything on such low credit limit.

running small balances would seem as either being very short of money or just poor money management
neither are positives.

eskbanker

tomxlisa wrote: »

I use my cards to gain a credit history, I don't really see it as getting into debt as I can afford to pay it all off immediately i just sometimes choose to carry balances as the interest is hardly anything on such low credit limit.

Unfortunately, it's not how you see it that matters, if you're doing this to build a history then you need to consider how credit ratings agencies would see it. If you can pay them off in full, do so, it'll save you money and look better to lenders....

tomxlisa

bearcat16 wrote: »

Keep asking for credit limit increases, and gradually the credit utilization % will go down.

I got a nationwide select credit card 4 years ago with a £3,500 limit, and I kept requesting increases. Now the limit is £13,500.

However, as others have said, stop paying interest when there's no need to. Pay off the balances in full at the end of each month.

This is one way but unfortunately capital one seem rubbish at increasing the limits, my vanquis I've only had for a month, that is suppose to have a raise at month 5 apparently.