Should I be "utilising" my credit more ??

Beffalump

I've been checking my credit files with all 3 companies.
I have a relatively low/poor score, I assume because of a (satisfied) CCJ which dropped off my file last month (Feb) and understand this will start and have an impact over the next few months.
I only have two credit accounts on my file as below
Barclayloan opened 12/16 balance of £1119.00 (no missed or late payments)
Express Gifts (Studio) balance +£1.00 with a credit limit of £400.00
So as you see i have a low amount of outstanding credit. Should I be using the studio account as a credit builder? Maybe order upto £10/£20 a month and pay it straight off the next statement. I'm not wanting any further credit just yet and I'm planning paying my loan off in the next week or so, but will be hoping to apply for a joint remortgage in the next couple of years.
Any advice or guidance would be appreciated.
Thanks

boo_star

Beffalump wrote: »

Should I be using the studio account as a credit builder? Maybe order upto £10/£20 a month and pay it straight off the next statement. I'm not wanting any further credit just yet and I'm planning paying my loan off in the next week or so, but will be hoping to apply for a joint remortgage in the next couple of years.

I wouldn't.

Although it doesn't look like Studio inflate their prices like some of the other catalogue companies they do charge £4.99 for delivery. You're potentially throwing money down the drain as in many cases you'll be able to find things elsewhere with lower or even no delivery costs. And if you're buying stuff you don't really need it's even more silly.

Getting a credit card and putting a small amount of your essential spending like a supermarket trip once a month on it and paying it off in full when the statement arrives is a fair more sensible approach.

forgotmyname

I pay my bills on time and my "score" went down.

Get a credit card and spend some on the card but keep the spends fairly low compared to the credit limit.

Pay it off in full every month and open a savings account, if you cannot save how can you show someone your capable of taking in a new debt/mortgage?

shortcrust

Agggrrrrr!

This is what all the marketing around credit scores does to people. It makes them think they have to be actively doing loads of things to ‘build’ their credit. I wonder how many credit accounts are opened, used, and closed for no reason other than to boost a score.

OP - What you’re doing at the moment is fine. One credit card used regularly (and ideally paid off on full each month if it’s not 0%) is all you need.

Grezz24

What would be best to do if you have no open credit cards.

I have 'fair' score but no open credit accounts as i dont need them / want to use them - and im saving for a mortgage in a savings account, based on the above should i have a single credit card and use it to 'boost my score'?

thanks

[Deleted User]

There is no score, fair or otherwise.

Get a credit card, use it regularly and clear in full each month. It's the easiest and cheapest way of building a credit history.

When your 'score' drops, ignore it.

Grezz24

Thanks zx81, As we are hoping to buy by the end of this year (help to buy equity loan), would you still recommend i get a credit card, use then clear? would this not hurt my chances of a mortgage due to more credit being available to me?

I have some form of credit building on my account (store card that i use and clear, halifax ultimate reward account that appears on my file etc)

[Deleted User]

A single credit card will only help your mortgage application.