Best way to build using credit card

electricblu

Hello


I am in the process of trying to build my rating such that I have a better chance of being accepted for a mortgage in the future. I don't have any 'bad' history, just don't have any history having had nothing other than utility bills and current account (without overdraft)


I've just applied and being accepted for a Yorkshire Bank card (my bank) which has 26 months interest free on purchases.


Knowing that some companies prefer people who make minimum payments (assuming you miss non) as it is a profit making enterprise for them, what is my best way to build my rating using this card?


I was initially planning on simply buying shopping/fuel on the card then paying off in full, however am I better buying one big-ish thing and then making a few medium payments over time such that they can see I am managing my money?


I didn't get the card with any particular product purchase in mind, just that it was a good way to begin my hike to building my rating and had a good interest free offer.

pcman1985

I'd pay the minimum plus £1 every month. This avoids the company putting a minimum payment marker on your credit file.

Once the interest free period is over then you know what to do

electricblu

Would this 'appear' better on my credit file rather than just using for small purchases (fuel, etc...) and repaying every month.


I know this isn't an exact science but I really want to build my rating as strong as possible

darkidoe

I would pay in full every month via Direct Debit, staying within credit limits. Eliminates the risk of missed payments.

Imagine you are assessing 2 credit reports. One pays in full every month, the other pays just over the minimal amount every month, carrying a balance over to the next statement. Which one would appear more credit worthy?