How to use my credit card!

33j33b

I have a credit card which I have begun to use to build up my credit rating (in order to buy a house).
Is there a percentage of my limit I should use every month?
I can afford to pay my balance off in full every month.

Also this might be a stupid question but if my statement says my payment is due by the 5th may and I pay on the 30th April, do I have to wait until after the 5th mat and my account has basically "refreshed" or can I use it straight away after?

bigadaj

Depends on the limit they've given you, if it's very low then spending a high percentage may be unavoidable, if it's high then maybe look at not exceeding 50% as a rule of thumb.

Ideally just use it regularly for normal everyday purchases.

It's a revolving credit facility so your purchases are included on a statement up to a certain date, you then need to pay that statement before teh due date, either set up a direct debit or pay a few days before.

Carry on spending on the card unless you are close to your limit.

Always remember that you are accruing debt and it needs to be paid off, paying in full every month should avoid any spending problems.

McKneff

Direct Debit is the sensible way yo go.

PeacefulWaters

Spend on card. Normal spending only. Once a month is fine.

Get statement.

Pay bill in full before the due date. Perhaps by direct debit.

Repeat.

rtho782

I got my first credit card Dec 2015, at the time with a £1500 limit.

I used it, sometimes carrying a balance sometimes clearing it (it was 0% for purchases for the first 18m anyway) and they increased my limit to £2250 then £4500, by the time I bought a house (with the same bank) in May 2016.

The limit is now even higher, and I have other cards, but don't carry much of a balance on any.

I paid by DD.

ERICS_MUM

I try to vary my useage, just to show that I don't rely on it month-in month-out. Also I don't withdraw cash with it - in case it looks desperate.

I have no idea if there's any merit in what I do ???

PeacefulWaters

ERICS_MUM wrote: »

I try to vary my useage, just to show that I don't rely on it month-in month-out. Also I don't withdraw cash with it - in case it looks desperate.

I have no idea if there's any merit in what I do ???

Many lenders consider cash advances combined with increasing balances a red flag.

And drawing cash when there's a fee to pay is bonkers.

wiseonesomeofthetime

Definitely, don't withdraw cash on it. It could be expensive.

Ensure different PIN to debit card so that you cannot withdraw cash by mistake.

Spending patterns are unlikely to affect your credit worthiness. Payment patterns will.

As previous poster recommended: spend, repay in full by direct debit, repeat next month.

Remember, it is your credit history you are working on, not your credit score. The latter is meaningless.