Credit Cards and Credit Score

twicebittennotshy

Hi.

I'm after a bit of advice to help me improve my credit score.

I have a number of credit cards, most of which are heavily utilised. I understand that the best way to improve my credit score is to pay these down as much and as quickly as possible. I also understand that it makes financial sense to pay off the most expensive (highest interest) card first.

My question is this: I can afford to pay approx £150-200 above my minimum payments each month. Strictly from the point of view of improving my credit score (or more accurately, to maximise my chances of a successful future mortgage application) should I focus all of this additional payment to the card with the highest interest and pay the minimum on the others, or should I spread the extra around and pay more than the minimum on all of my cards each month?

All sensible advice will be gratefully received.

ashp_2

If it was me I would make minimum payments on the two lower cards and clear the higher interest card asap. I don't know your rates but even a small saving in interest is going to help reduce your debts more quickly.

mrmagooooooo

Pay just above the minimum payment on the two lower and start smashing away at the higher.

I say just above the minimum as if you only pay the minimum payment it will put minimum payment markers on your credit file.

Hope this helps

twicebittennotshy

Thanks for the replies.

Does anyone know how much extra has to be paid to avoid minimum payment markers - £1, £5, £10?

[Deleted User]

£1 is fine.

mrmagooooooo

what ZX81 said, a token pound is enough

Anthorn

twicebittennotshy wrote: »

Thanks for the replies.

Does anyone know how much extra has to be paid to avoid minimum payment markers - £1, £5, £10?

Oh here we go with that marker thingy again: What the minimum payment marker shows is that you are keeping to your agreement. To underline that we should consider that the minimum payment doesn't show if you pay more than the minimum payment but equally it doesn't show if you fail to make a any payment at all.

But yes, as already stated, if you want to avoid it just a quid extra is enough.

Marker is the new MSE word of the moment.