Perfect payment record - credit card and zero spending? Newbie to CC

ffurdoow

Hi, newbie to credit cards! I have recently taken out a credit card for the sole purpose of improving my credit history with a view to getting a mortgage at some point in the future. I intend only on using it as little as possible to maintain a perfect repayment record. Is it feasible to do this whilst making zero purchases on the credit card whatsoever? Or do I have to make a small purchase each month (or multiple purchases?) to fulfil the requirement of improving my credit history / scoring (or whatever it is called?). I'd rather not use it at all, but if I have to I can make small purchases. I have been told by a friend cutting it up and never using it would equal a perfect payment record but I am not sure whether to trust this advice from a friend. Also should I keep increasing the credit limit available as offered by the bank - would this positively impact my credit history when it comes to a mortgage? Or should I keep the credit limit at the lower end? Many thanks from a newbie!

LordSomebody

Use it for whatever you would normally buy. Pay off in full by direct debit (after the statement is generated). Forget that it’s possible to do anything other then pay off in full every single months. Try not to max it out every month even if paid off in full, and yes take any limit increase offered.

ffurdoow

Are you saying that I won't get a better credit rating if I don't use it at all vs using it as much as possible? The person knows a bank manager who said you would get a perfect payment record by never using it?

[Deleted User]

If you never use it, you don't show that you can handle credit. It would be like trying to show you're a great driver by sticking a new car in your garage.

Use it and clear in full when you get the statement.

ffurdoow

thank you! I will use it for the odd thing then I guess  

cymruchris

ffurdoow said:

thank you! I will use it for the odd thing then I guess  

Make sure you set up a direct debit to clear the balance automatically on a monthly basis. Don't be tempted to pay off your purchases manually as you go through the month. Your statement that's produced monthly should show some 'balance' - and then let that get paid through the direct debit mechanism to reduce the monthly balance to zero. Purchases made after the statement date will be collected the following month - and again will remain interest free as long as you use the direct debit paid in full option. This is to ensure the relevant information is posted to the credit reference agencies of you making some purchases, and paying them off in full, in other words - managing your credit successfully.