Help and advice with improving credit score

EquusSomnium

My credit score is currently 727 (experian). It has taken a beating in the last couple of years and I want to improve things.
I am a postgraduate student and will finish in June 2019. I receive a tax free stipend (£1500 per month) and after my outgoings I never seem to have much left.
I recently set up a Vanquis card (£250 limit) and CapitalOne card (£200 limit). These are for emergencies but I would like to know more about using them to improve my credit score. I've heard conflicting things so I'm a bit confused (and a forum search here also hasn't helped much so far so I apologise if this has been asked too many times before).
I heard that having a card and not using it can help, but also that not using it will not help your credit rating at all. Others say use it regularly but don't pay it off in full.
My plan was to use them for something I do regularly, like food shopping and then setting up a direct debit to pay them off (one or both).
What do you think?

I also have a Natwest graduate account credit card (£500 limit) which I am maxed out on and paying £50 monthly.

I need to pay off an overdraft of £1250 as well. The odds seem stacked against me but I'm determined.

[Deleted User]

Ignore your score

Use the cards you have for normal everyday purchases and pay them back in full each month after the statement is issued

This will build credit history

EquusSomnium

Great thank you. I am getting tired of everyone and their uncle telling me different things. I've also heard to never pay it in full because it shows 'you're being too careful'!

Thank you for your help

[Deleted User]

At the moment, you're telling lenders you're high risk, with a maxed out card and overdraft.

Clear both and never carry debt unless essential or profitable ( e.g. Stoozing).

[Deleted User]

EquusSomnium wrote: »

Great thank you. I am getting tired of everyone and their uncle telling me different things. I've also heard to never pay it in full because it shows 'you're being too careful'!

Thank you for your help

Paying in full shows that you can borrow credit and pay it back in full in a timely manner.

Carrying a balance and not paying it back in full (unless on a 0% promo) could show that you struggle to pay things back.

DCFC79

EquusSomnium wrote: »

Great thank you. I am getting tired of everyone and their uncle telling me different things. I've also heard to never pay it in full because it shows 'you're being too careful'!

Thank you for your help

Paying cards off in full each month shows your a responsible person, it shows your reloable to keep to the agreement.

Ben8282

Having a maxed out credit card with a £500 limit will show potential lenders one thing. That you are unable to repay £500.
If your income is £1500pm then repay this card IN FULL every month and use it for your day to day spending, spending and repaying each month.
The same applies to the overdraft. Have your £1500pm income paid into the account that is overdrawn thereby clearing the overdraft each month even if you need to dip in to it again during the month..

Dobbibill

Don't worry about the score it is only an indication of how Experian views you - Experian aren't lenders though.

Check that all the data they hold is accurate, details of your full name, address, DOB, accounts you have opened/closed and how they are marking it each month.

Pay off the debt ASAP and then use your credit cards for normal spending such as fuel or groceries - maybe even one for each and then pay off in full and on time. This means you won't pay any interest. You will then build up evidence of being a responsible lender

Mobeer

EquusSomnium wrote: »

Great thank you. I am getting tired of everyone and their uncle telling me different things. I've also heard to never pay it in full because it shows 'you're being too careful'!

Thank you for your help

Keeping a significant balance on a credit card and keeping up minimum repayments can mark out as a highly profitable customer and hence attractive to new lenders. Especially those with high interest rates who can profit nicely from all the interest you are paying.

It's good for the company, but a bad option for the customer.