Is it better to pay off more to increase credit?

seatbeltnoob

Deleted_User wrote: »

My experience of working with a number of lenders is that the amount spent is rarely taken into account, except in manual referrals.

The concept of credit management and discipline is established via the credit file, and affordability for larger debts is assessed via income.

i'm sure though that there will be lenders who may take a different approach.

Yes and all mortgages are manually assessed. I'm sure most large finance agreements and loans are manually assessed too.

Arleen

seatbeltnoob wrote: »

Yes and all mortgages are manually assessed. I'm sure most large finance agreements and loans are manually assessed too.

Less and less. And in few years no one will be underwriting mortgages either as automated models do a much better job at it than humans and they are being slowly rolled out across all products.

And as you've admitted your idea of spending more is just a guess, it is worth to preface it as such. I had access to play with some data model proposals made for credit lenders (not to confuse with the confidential models that are actually used) and never seen much positive weight put to large balances on credit cards. Having paid off a bigger personal loan, sure, makes sense, but not carrying a CC balance.

Chris_P_2

Arleen wrote: »

Given that lending criteria are one of the largest secrets out there, what are you basing your assumption on?

And OP, you want to pay it off in full via DD, not manually as then it indeed may not even register on credit file that the card was used.

is that right? So i cant spend on it during the month and clear it via a bank transfer for it to improve the rating? It has to be by DD? That cant be right as the amount will vary each month

[Deleted User]

You can pay it by manual transfer if you want. But it increases the chance of error.

A DD will always take the right amount, at the right time.