High Balances:

Jsscmm

tomxlisa wrote: »

The reason i choose to leave a balance is the card looks active on my credit reports then as i am paying towards it each month which gets me the on time markers, if i pay it off and don't use it for 5 months it will show inactive and no markers then?.

Pay it off in full each month AFTER the statement date but by the payment date and you will still get the mark of having used it and paid it for your credit file.

I would recommend a direct debit set up to pay them off in full if possible.

tomxlisa

Jsscmm wrote: »

Pay it off in full each month AFTER the statement date but by the payment date and you will still get the mark of having used it and paid it for your credit file.

I would recommend a direct debit set up to pay them off in full if possible.

I don't really use the card that often now, which is why I leave a balance on it to pay a little each month to get the markers, if I paid it off in full I wouldn't have anything to pay as I hardly use the cards at the moment for new purchases.

tomxlisa

PeacefulWaters wrote: »

Clear the balance in full every month. Stop chucking away money on interest you don't need to pay. That's madness.

Make a normal purchase every month on each card. Not something extra, just your ordinary day to day spending. Get statement. Pay in full. Repeat.

Costs you nothing. Establishes payment history.

Advice noted.

Enterprise_1701C

tomxlisa wrote: »

Thanks for the advice, most of it was good information, but i do not want a mortgage and the only reason why i have balances on my cards at the moment is i don't see it as a major priority to pay them off in full (unless it is gonna damage my credit file) and from what i've read it doesn't do much negative to your credit reports it just looks more favourable if your paying them off in full, i guess as like you've all said as this may look like you can afford to use them, i think in the future i will pay most of the balance off and just leave a tiny amount, like £20 quid or summat instead of the current £150 or so.

If you leave a tiny amount you will still be paying the interest on the balance from the previous month. There is no point in leaving anything on the cards - I clear mine every month. Why pay to use the cards when the money, however minor it may be, can go towards something else?

tomxlisa

SnowTiger wrote: »

Extremely low limits, which suggests the two card providers are taking a punt on you.

You should pay the balances in full every month. To do otherwise suggests even those limits are problematic for you.

Yeah I agree but not sure why they see me high risk as I have a perfect credit history but that's another story, and your other advice has been noted.

eskbanker

tomxlisa wrote: »

Yeah I agree but not sure why they see me high risk as I have a perfect credit history but that's another story, and your other advice has been noted.

What makes you think you have a perfect credit history and what do you think that actually means?

SnowTiger

tomxlisa wrote: »

Yeah I agree but not sure why they see me high risk as I have a perfect credit history but that's another story, and your other advice has been noted.

A perfect credit history or no/limited credit history?

Arguably someone who turns eighteen tomorrow would have a perfect credit history: no late payments, no missed payments, no defaults, nothing bad. Perfect.

They'd also have no credit history on which a lender could base a lending decision, hence they might be considered a high risk and only get a £200 spending limit until they've established a track record.

tomxlisa

eskbanker wrote: »

What makes you think you have a perfect credit history and what do you think that actually means?

No defaults or missed/late payments was what I meant.

chattychappy

You say you don't use your cards that often. But surely you are buying stuff every week?

Just use your CCs wherever they are accepted for all your monthly spend (but so much you go above the limits). Then pay it off in full each month.

CCs do want people to have cards and use them. They make money even if you pay off in full. So unless there is anything problematic (eg not on electoral roll), you will get higher limits in due course. Or you can just apply for a mainstream card further down the line - though of course they will consider other facts too - eg income, rent/owned etc.

If you are only using the cards rarely, but then keeping a nominal balance each month on which you are paying interest, it doesn't really look good.