Which is best for improving credit history with a credit card?

markimark1984

Hey guys,

I just have a quick question about how to use my credit card to build a better credit history on my report.

Some people say paying off your credit card in full each month is great for improving credit. But also, some people say to buy something for a few hundred pounds and spread the cost to pay it off over 3-4 months?

I have just bought a piece of furniture for £479 and I was wondering what would be best to do? Pay it off in full or pay £120 each month over 4 months (or similar).

If I was to spread the cost my plan was to not put anything else on the card until it's been settled.

What do you think is best?

Thanks!

Mark

MallyGirl

You get the most benefit from regular payments but there is no need to pay interest unnecessarily.
Buy your item and pay it off in full when you get the statement - this gives you the protection etc. Then each month after that buy something small that you need - petrol? - and have your Direct Debit set to pay in full every month.

markimark1984

@MallyGirl

That's great! Thank you so much for your clear advice. I'll do just that.

Mark