Am I using my Credit card correctly

I’ve just got a credit card to improve my credit score, but I’m not sure If I’m  using it correctly. So I’ve been spending on it and then going onto the app paying it off straight away. Is that ok or should I set up a direct debit for it to be paid Monthly? 


  • [Deleted User]
    [Deleted User] Posts: 35,242
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 23 April 2020 at 11:03AM
    At the moment, you're giving the impression you never use it.

    Just set a DD and let it pay it in full.

    Remember also that you're not looking to improve your credit score, but how lenders view the risk you present.  Your score should start to drop as you change to using your card correctly, but that's fine.
  • BlackWillow
    BlackWillow Forumite Posts: 14
    10 Posts Name Dropper
    So I’ve been spending on it and then going onto the app paying it off straight away. Is that ok
    No, that won't register with the credit reference agencies. It will just appear as though you never use your card and won't help build your score. You need to do your spending and then wait to get a statement and then pay. As long as you always pay the full amount listed on the statement you'll never pay any interest.
  • jonesMUFCforever
    jonesMUFCforever Forumite Posts: 28,898
    Part of the Furniture 10,000 Posts Name Dropper
    I agree use it - pay it off as soon as statement is produced - either by direct debit or faster payment. Over time this will show on your credit files as a lot of green ticks - you will appear to be using your credit facility correctly.
  • cymruchris
    cymruchris Forumite Posts: 4,541
    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
    To improve the way future lenders see your financial behaviour (not related to any score) - buy the things you would always buy - wait for the statement - pay in full. Better still - set up a direct debit to pay in full - then you don't even have to worry about it (other than making sure there's enough money in your current account to pay for it). By doing it this way, the CRA's will get a record each month of your balance being X - and your payment being X - which over time will show continued financial management. You might also find that if your limit is fairly low being a new card, following this pattern may lead to an increase in available credit limit. (Not that it would then be a reason to spend more - but having bigger credit limits is also a benefit).
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
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