We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Credit card after IVA completion

Hi, Am hoping someone can help. I've just been accepted for a credit card after completing an IVA. In an ideal world I wouldn't have one but know that I need to improve my credit rating.
I will only be using it sparingly for petrol.
I want to pay it all off as soon as the bill comes in, however OH reckons that I should pay most of it off (for example, spend £20, pay say £18 off, leaving a small balance to keep the card ticking over and help improve the credit rating).
Which is best to do? I haven't had any form of credit for 6 years and am so confused with it all!!!
Thank you

Comments

  • missbiggles1
    missbiggles1 Posts: 17,481 Forumite
    10,000 Posts Combo Breaker
    If you leave a small balance outstanding, you'll be paying interest on it all.
  • Always pay off in full, unless you really don't have the funds.
  • Nebulous2
    Nebulous2 Posts: 5,762 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    There's building a credit history by using credit to your advantage, and there's becoming obsessed by it and changing your behaviour to your disadvantage.

    It's rarely sensible to voluntarily pay interest. Pay it off in full after the statement.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.3K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.4K Work, Benefits & Business
  • 601.1K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.