Happy but feeling cautious

Shepaholic

I have a bad credit rating but my financial situation has, thankfully, got back on track.
I have seen in many places that obtaining a credit card and paying it off every month can and will make a (relatively) quick improvement to my score but I'd like to know.....
Do I use my new card right up to the limit each month?
or
Can I just spent a fiver on it just to 'cheat'' the credit system?
Either scenario's balance will be paid each month
Which would be a more 'revered' credit climber....if at all
:beer:

[Deleted User]

Ignore the score as it’s not a real thing.

Use the card monthly for whatever you would normally spend and then pay it back in full each month.

Shepaholic

Ignore the score? I've been refused services/credit because of "my bad score"? So if it's not my score.....what is it?

Sncjw

It will be the lenders own score.

Think of this when you watch say gymnatics they each give a score. You see how different it is to each judge. Think of them as the lender and the credit reference agency. They all see the same sort of thing and they give different scores. It’s their opinion not a fact.

Shepaholic

Aaaah! I didn't know that! Thank you all

[Deleted User]

The CRA scores aren’t the ones seen or used by lenders. They have their own way of scoring and rating you.

MovingForwards

Use just under 50% of the credit limit each month (or less) and pay it off in full by the due date.

Keep an eye on your credit report history, watch as the defaults and old messed up accounts start to drop off after 6 years.

Don't let history repeat itself and the future is something to aim towards.

sillyhilly

I put the 'necessities' on credit card to build up my rating (i.e. petrol, commuting etc), which I would have spent anyway.

Don't use more than 50% of your credit, though.

[Deleted User]

sillyhilly wrote: »

I put the 'necessities' on credit card to build up my rating (i.e. petrol, commuting etc), which I would have spent anyway.

Don't use more than 50% of your credit, though.

Don't build up your rating either - like the score it's not a real thing.

And you can use more than 50% of your available credit if you pay it back in full each month - it's not an issue.

sillyhilly

I'm aware my 'rating' or 'score' isn't a real thing, but let's be honest... Apart from those that use these forums, that's what everyone focuses on.

JayMawds82

Spend a tenner, pay it off when you get your statement.

Rinse and repeat.