How to build your credit score using a credit card?

sultanoflondon

Hi all,

I understand that by using a credit card and paying the bill in full each month, you build your credit score. Is this correct?

If so, does this apply to someone who uses a credit card as an additional holder? For example, if I am an additional card holder on someone's credit card account and they pay the bill in full each month, does this build my credit score as well as theirs?

Thank you!

GingerBob_3

sultanoflondon wrote: »

Hi all,

I understand that by using a credit card and paying the bill in full each month, you build your credit score. Is this correct?

If so, does this apply to someone who uses a credit card as an additional holder? For example, if I am an additional card holder on someone's credit card account and they pay the bill in full each month, does this build my credit score as well as theirs?

Thank you!

No, it has no effect on your ability to obtain credit. As a secondary cardholder you are not reported to the CRAs - unless the card provider has created a malicious financial association between you and the primary card holder (apparently the CRAs say this should not happen, but certain providers, e.g. M&S, may create an association anyway. This should not happen, but since the CRAs accept all data that comes their way and don't have a QA regime, the likes of M&S get away with it. They are best avoided).

Anthorn

sultanoflondon wrote: »

Hi all,

I understand that by using a credit card and paying the bill in full each month, you build your credit score. Is this correct?

If so, does this apply to someone who uses a credit card as an additional holder? For example, if I am an additional card holder on someone's credit card account and they pay the bill in full each month, does this build my credit score as well as theirs?

Thank you!

It's not credit cards as such that build a credit history. It's credit, period. It's just that credit cards are a convenient method of building a credit history because they report to a CRA and are often easier to get than, say, a loan due to the selection of sub-prime, credit-building cards available. A credit history can be built with everyday credit accounts that householders have such as energy, water, telephone, etc., provided they report to a CRA.