Help!!!

kirstyyy89

Eurgh I’m so annoyed with myself for listening to somebody who I thought knew about this as I don’t quite understand it! Ok so I have a 1000 pound limit on a vanquis credit card, I use that whole 1000 a month and pay it all on time and use again.. I was told that was ok but the whole point of me getting this card was so that I could get a good credit rating.. now it seems I’m living off of this card! So now my credit rating is going down lower and lower instead of up! It’s 59 percent apr.. how can I pay this off so that I can have the 1000 for emergencies.. I have set up a direct debit of 200 a month but is the apr monthly on top? I feel so stupid for letting myself get into this situation when clearly the person who I trusted didn’t know what they were talking about..  

Willing2Learn

Hi kirstyyy89 and welcome to the forum 

No need to feel annoyed with yourself. You simply need to start a balanced budget going...

...Some people find it  easier to regain control of their budget by starting a spending diary, to track all monthly expenses...You can then load those numbers into your statement of affairs...

[Deleted User]

Your credit rating will always go down when you use a card properly - that's why they're only provided for comedy purposes, not for anything serious.  You're trying to impress lenders - not Experian.

If you're clearing the card each month, then that's all you need.  But if you're overspending, you need to get that under control.

cymruchris

Let's say you have £1000 as your salary every month after your big deductions (mortgage rent etc) - so Jan 1st - there's £1000 in your account - you then spend £1000 on your credit card through January - and at the end of January you get another £1000 salary - there's now £2000 in your bank account - and a bill from the credit card company for £1000. You pay the £1000 to the credit card company - and then have £1000 remaining in your bank account. For February you do it again, spend your £1000 on credit card - and at the end of the month will receive your £1000 salary - £2000 back in the bank account - and a bill to pay the credit card for £1000 - you pay it - and you're back to £1000 in your bank account. Rinse and repeat for the whole year - you won't pay any interest - your credit rating in the eyes of lenders will improve. At all times though, you need to make sure that £1000 stays in your current account - it should never be spent as 'money' as you always owe it.

You don't actually have to spend all £1000 every month however - you might use just half of it - and pay that off every month. It's more about the fact you use it, and pay it off in full that benefits you, not the fact you've spent it all and paid it back. 

Maybe you can share this post with whoever told you how to use your credit card - but for now if you're paying interest - you need to get on top of it - paying as much as you can every month until the balance is cleared (trying not to put new spend on it) - then once you've done that - and got £1000 in your current account - you can start again following the above pattern. 

coachman12

Welcome Kirsty and sorry to hear of your problem.
First, don't worry about credit rating. It's your credit report that matters. And it should be OK IF you are using the Card for £1000 per month and paying off full balance off every month. That is how I read your posting ( and it is not wholly clear or detailed enough). If my assumption is correct, you are saying that you want to stop spending the £1000 every month on the card and then paying it back every month. You want to manage your finances without relying the dreaded Card. If so, just stop using the card and find savings in your outgoings, no matter how much it hurts. If you are paying £200 per month to wean yourself off using the card, you will have no outstanding balance after 5 or 6 months of austerity in your household budget.
If I have misinterpreted your position and you are not paying off the balance every month and you are attracting the high interest rate, my advice is the same but more so------give up all expenditure you possibly can, no matter what you have to go without during the next 6 -12 months.
Sorry I can't give you a magic answer, Kirsty. Just grit your teeth and slash your expenditure. And before taking advice from people who say they know best, come along to this Forum and some of the good posters  will always try and help----and remember that the more detailed and lengthy information you provide, the better help you will receive from those who represent the caring face of posters ( and they are still in the majority ). Good luck. 

kaiwan91

Don't reach your credit  limit use only below 30% of your credit limit every month  that's all, and your credit score go up again.