Paying off a card

Alex1987

Hi all

Just looking for some quick advice if possible.

I have a credit card and the balance is £1,655. The limit is £2,450 so I am utilising 67.5% of the card.

I am paying off £160 a month although this month I will be able to pay about an extra £110 so I am aiming to clear it within the next year.

My question is, as I have no other debt, at what point would my credit score start to improve? I have read other posts about not worrying about scores too much but I do keep an eye on this and my thought is that it should increase each month as I pay more off.

Will I see a slight improvement each month or will I see a big improvement once I am utilising 40% and less? Thanks in advance.

sourcrates

Hi,

Quick advice.........ignore your credit score.......as you have read.

It goes up and down depending which way the wind is blowing.

Geoff1963

The big improvement ( financially ) is when you can clear the balance in full each month, and hence have 0 % borrowing.
Could you get a 12 month loan for maybe £1,400 ?

enthusiasticsaver

The best way of getting a good credit score is to repay the card in full each month. Using 67% of all available credit is liable to keep it down. Don't worry about credit score and concentrate on paying it off. Do not get a loan as poster above suggests. Many people get into difficulties by doing this. They pay off card with the loan then spend on card again so then have 2 forms of debt instead of 1. Is the card on 0%?

Geoff1963

the balance is £1,655 . . . .I am paying off £160 a month

How much do you spend on it each month ? Or, is it just being paid off ?

If you spend a lot on it each month, so it is paid in full, then it is 0 % ; and looks good on a credit score.

Alex1987

Geoff1963 wrote: »

How much do you spend on it each month ? Or, is it just being paid off ?

If you spend a lot on it each month, so it is paid in full, then it is 0 % ; and looks good on a credit score.

I'm no longer spending on it. The plan is to clear the card and then only use it for fuel each month and then pay that off so that I'm hopefully rebuilding my credit score/history.

As it stands my chances of a loan are 80% at best but I would prefer to avoid that so that I am not adding a search or new account to my credit history.

Alex1987

enthusiasticsaver wrote: »

The best way of getting a good credit score is to repay the card in full each month. Using 67% of all available credit is liable to keep it down. Don't worry about credit score and concentrate on paying it off. Do not get a loan as poster above suggests. Many people get into difficulties by doing this. They pay off card with the loan then spend on card again so then have 2 forms of debt instead of 1. Is the card on 0%?

Thank you. I tend to agree and would like to avoid adding to my credit history for now.

My balance was £2,000 at the end of June and it should be about £1,400 in the next fortnight.

The card isn't 0%. Some months I've had interest of about £40 added, there wasn't any interest added this month though.