Credit score question

kaMelo

LunaD said:

Ebe_Scrooge said:

LunaD said:

Myself and my husband took out a credit builder card this week I read this can help your credit rating and we both had a credit limit granted of over £1200. We of course are going to stay under the 25% and pay balances in full each month. We only did this to try and help boost our credit. I hope this works. 

I find it all very confusing as people say your credit score doesn’t matter but it must do to some degree. 

To reiterate what's already been said, your credit score makes no difference, what matters are the facts contained in your credit file.

There's no reason to restrict yourself to only using 25% of the available credit on your card - this is another myth perpetuated by the CRAs, but it doesn't matter as long as you pay in full.  Use the card as much as you like (staying within the credit limit, of course), but make absolutely sure that you always pay the full statement amount, every month, without fail.  Doing this will begin to build up a record of responsible borrowing and repayment, which lenders like to see.  It won't happen overnight, but gradually your negative marks (CCJ, etc.) will begin to diminish in importance and the "good" marks will begin to make a bigger impact.

That all makes sense thank you so much.

So if I spend say £200 on my credit card, I wait for my statement then pay it in full? Will I also pay the interest too? 

So will having this credit card granted and a good credit limit help my credit file too? 

If you pay off the statement balance in full by the due date then no interest will be charged.
Continuing to do so will create a history of you managing credit well and not spending more than you have available.

This proven track record of paying back what you owe each and every month is exactly what any lender wants to see.