New comer in UK and credit score funny story

Rocksolid

ok thank you, now the point is how to use properly the card.
Suppose that I spend 500 pounds per month as average for whatever thing needs to be billed, if I use currently all my 200£ of balance, or the next one of 500£ (example), in order to have the max utilization on both cases, is this better than to use only the 30% max?

The point is, if I spend anyway 500 per month and I pay back fully, what's the difference if I spend max the 30%?
So automatically they see I'm able to pay back more and grant me a bigger amount sooner, ideally.
All the reasoning because if I borrow 200£ (current credit) and I'm able to pay back all, is different if I borrow 50 pounds only and pay back in full... This should build more trust for my understanding, and is also quite obvious because 200 are for eating in 20 days aprox, there are also other expenses.

What do you think about this?

The difference in that country is that I had the registration as a foreign citizen, what here is called blue card, I'm gonna apply soon if I'm entitled.
Otherwise I was using my cc for everything, but using only around 30% of credit, sometimes I went down to 70% but for no reason, just to see what the bank was thinking about that ahaha, no sense if you have the money to buy something, it can be useful if you have emergencies, that don't create other emergencies...

Thrugelmir

Rocksolid wrote: »

ok thank you, now the point is how to use properly the card.

Spend and repay. Repeat and repeat. Time alone builds credit history.

Rocksolid

Thanks but I'm in doubt with the amount to use, above my explanation.

Ben8282

Rocksolid wrote: »

Thanks but I'm in doubt with the amount to use, above my explanation.

Use a substantial part of the limit but not all as you don't want to risk accidentally exceeding your credit limit.
Wait for a statement.
Repay in full.
Repeat each month.

Rocksolid

So you mean if I trigger that kind of transaction for funds not available is a real problem with the cc?
I'll use the 90% then, let's see what happens.

Ben8282

Rocksolid wrote: »

So you mean if I trigger that kind of transaction for funds not available is a real problem with the cc?
I'll use the 90% then, let's see what happens.

Yes. If you exceed your credit limit it will be a REAL BIG PROBLEM so don't even think about doing it.

Rocksolid

To avoid that I think I'll overcharge the cc, if is possible with this card, bigger pillow sweet dreams.

CKhalvashi

Rocksolid wrote: »

All this comes from moneysavingexpert, that I remember is not an official Institution

MSE is a private website, which provides advice and credit score information directly from a CRA. I'm not sure which one as I don't use MSE for this purpose.

MSE are a highly trusted company in the UK, started by a very clever man who has helped many people here get out of debt and play the system.

I have applied for products through the site as I believe it is worth supporting, and also believe that doing this keeps the site free for those who need it most.

The overdraft value is zero, because I have no overdraft, precisely should be null .
Credit card will show up this month, but I paid in full the first month so no issue.

Good to hear that MSE and the CRA in use are providing correct information. This is how it should be.

I expect to know when I can apply successfully for a credit card or any other financial product like a loan or mortgage without being rejected.

It will depend on your circumstances.

My first credit card had a limit of £200. The same card many years later has a limit of 5 figures. I have always paid in full and never paid interest on this card.

My bank says that after 1 year I can do it, wonderful, others no one knows unless I open an count with them, and this is not even sure.
After this one year in my bank I may be also refused for such request, for whoever reason.
I would be curious to know the result if I had 50k in my account .

This is the same for everyone, it depends on their circumstances.

If you're saving/investing every month, there's no reason why you won't be able to do this as it's obvious you have spare income. If you have a small amount going into the account and are struggling financially, then the bank will not offer to extend you credit.

Any limits will be based on your personal circumstances.

Ben8282

Rocksolid wrote: »

To avoid that I think I'll overcharge the cc, if is possible with this card, bigger pillow sweet dreams.

'Overcharging' a credit card is not a term that I am familiar with but if you mean what I think you might mean, overpaying and putting the credit card account into credit, that is not allowed and you will have BIG PROBLEM if you do it and the credit card will be cancelled so don't.

Terry_Towelling

The point of using a credit card is not to massage your irrelevant credit score (or your credit history, although it will automatically create history as you go along). You use a credit card to your advantage and to help you - that's all.

There are those who say you should not use more than 30% of your credit limit - I have no idea why but I'm sure someone will come along soon to explain why they believe this matters. All I can say is that I have never had a problem getting credit and I've never taken any notice of my utilisation percentage.

Perhaps the 30% figure should only apply for those who carry a debt from month to month, and then only when the credit limit is more substantial than £200. To be honest, if I were a CC company, I'd view someone who only used £60 of their £200 limit each month (and then never managed to pay it all back) as a higher risk than someone who took the full £200 and cleared it each month - but, then, I'm not a CC company.

The key for you is to create a credit history that shows how well you manage the credit that is at your disposal. Using a card and paying in full is more akin to deferring payment for purchases than using credit to make them; it's like using a Charge Card rather than a Credit Card. Paying in full shows you have the resources and the self-discipline to manage the product in the best way for you. When your history shows that you are not likely to pose a risk of defaulting, the limit will surely rise.

You can, of course, spend more than your £200 credit limit each month but that would mean you'd need to be making extra payments to your account during the month to ensure you never exceeded your credit limit at any point.

Some people report putting their cards into a credit-balance position (overcharging?) and seem to have no problem, but this is contrary to the T&Cs of most cards and not really recommended. Only make payments after transactions.