Go into debt, for the sake of my credit rating?

Twointhebush

I don't have any debts. I got myself a credit card a couple of years ago (I've never had one because I've always lived debt free), just because I thought I better build a credit history. I use the card on a fairly regular basis and pay it off more or less the same day as I use it, and often deposit money into the account in advance. So I never actually go into debt. But would it be better for my credit history if I actually had a bit of debt on the card, and paid the minimal fee off every month?

[Deleted User]

Absolutely not.

It will demonstrate you spend beyond your means and are a higher risk customer.

Always clear in full unless you have a 0% promo.

[Deleted User]

Paying the balance off before the statement is issued makes it seem like the card isn!!!8217;t being used.

Also topping it up will be against the terms of use and could lead to the account being suspended and closed.

You don!!!8217;t have a credit rating to effect, only credit history

ricky_v

I use the card on a fairly regular basis and pay it off more or less the same day as I use it, and often deposit money into the account in advance.

You'd be better off doing your usual spending and wait for a statement to be generated then pay the statement balance off in full once a month rather than paying it off after every transaction as it will show little/no credit ultilisation. Plus it will save you a bit of time manually paying the card off several times a month.

As zx81 says, don't leave an outstanding balance costing ~20% APR on a credit card for the sake of building a credit history.

Dobbibill

Use each month.
Pay off in full.
Repeat.

Avoid deliberately putting it into credit - that's normally a breach of the T&Cs and you risk having it closed.

maxximus75

If you're worried about forgetting to pay, just set a direct debit up to pay in full each month.

That way you won't pay a penny in interest and it will help with your credit history.

Twointhebush

Looks like I've spent two years building up a credit history, but haven't! I'll set up the direct debit system. I suppose having a credit card and never going into debt counts for something though?

Thanks

Dobbibill

Be mindful of when the DD will kick in - it's not normally the next statement if you are part way through the statement cycle. It will say - you will probably need to make a manual payment for the first statement. (do this by the due date and you'll be fine )

Nasqueron

Twointhebush wrote: »

Looks like I've spent two years building up a credit history, but haven't! I'll set up the direct debit system. I suppose having a credit card and never going into debt counts for something though?

Thanks

The point of using a CC to build credit history is to spend on it, enjoy the protection and interest free period and pay off in full by direct debit after the statement, it shows you can handle credit responsibly. Start doing that

maxximus75

You have been building a history as such as the account will show as open for the past years and an OK marker placed each month month.

It just looks as if the account hasn’t been used as such by paying it off before the statement.

No matter, just a slight tweak to your process is all that’s needed. Don’t fret it!

Ben8282

Using a credit card and repaying in full every month is not getting into debt.
The way you are conducting this account is very strange. What is the point of using credit card if you pay it off immediately? Why do you put the account into credit which is against the terms and conditions of the account?
The idea of making only minimum payment s and paying interest every month is foolish.
As someone who had always lived debt free and doesn't want to get into debt, you seem very concerned about this imaginary 'credit rating'. Why? You only got the card to improve this 'rating' but what do you want to improve it for if you don't want any credit products?
You managed to get this credit card so there can't be all that much wrong with your 'credit rating' can there?
Stop this nonsense, set up a direct debit to pay the full balance of the card each month, leave the money in your account taking advantage of the 56 days interest free credit, earn interest on your money or keep your current account balance up.