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Credit Card utilisation on 0% - best time to repay?
richy4
Posts: 146 Forumite
in Credit cards
Got a Tesco Credit Card which is currently 0% on purchases for 21 months.
My credit limit is £5,300 currently.
Out of this I have so far accumulated a balance of £1700, it was over £2000 at one point but I paid this down slightly.
My question is, what is this doing (if anything) to my credit score/rating. Is this a good thing? I always pay off at least £100-200 a month and anything I add to the card is just general day to day stuff like food etc so I'm stoozing the cash I'm keeping aside from small repayments.
I'm intending to buy a package holiday in a few days which would add another £1000 to the card, this would take the utilisation to over 50% and I'm just slightly concerned this might look like I;m maxing out the card to the lender?
In a few months I also intend to get on to the housing ladder, so obviously will pay the whole card off prior to mortgage applications.
Just wanted to hear from you guys if I'm using the card in the best way and if not what to do differently! Thanks
My credit limit is £5,300 currently.
Out of this I have so far accumulated a balance of £1700, it was over £2000 at one point but I paid this down slightly.
My question is, what is this doing (if anything) to my credit score/rating. Is this a good thing? I always pay off at least £100-200 a month and anything I add to the card is just general day to day stuff like food etc so I'm stoozing the cash I'm keeping aside from small repayments.
I'm intending to buy a package holiday in a few days which would add another £1000 to the card, this would take the utilisation to over 50% and I'm just slightly concerned this might look like I;m maxing out the card to the lender?
In a few months I also intend to get on to the housing ladder, so obviously will pay the whole card off prior to mortgage applications.
Just wanted to hear from you guys if I'm using the card in the best way and if not what to do differently! Thanks
0
Comments
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As long as you're making min repayments, it's fine. Promo balances have a marker that lenders take account of, so it is not mistaken for financial stress.0
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Its not really having much of a detrimental impact if your paying it0
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