Why isnt my credit raiting going up?

mattster89

Ive been tracking it for the past few months but it is static. I have a loan that I pay every month, which is due to be completed in December. I have mobile phone contact, car on PCP for example and never missed a payment on anything. I have a credit card but I dont really ever buy anything on it, I just pay the £3 monthly fee off straight away every month - I guess paying off the account fee doesnt count towards much. Would it be better if i buy things on it instead and pay off straight away? Im wondering if i dont use the card now its 0% period is over is there any point even having it or should I just close the credit card account? I have a good credit raiting but its the category below the highest one, and I am considering applying for my first mortgage so Im trying to do everything I can to give my credit raiting a little boost.

Thanks in advance for your replies

[Deleted User]

Your credit rating isn't connected to your credit worthiness and the number doesn't matter.

It's how you manage your credit which is what lenders review. Use your credit card and clear in full when you get the statement each month.

Clear the loan and PCP early if you can. Use that money to get your deposit together. It will lower your credit rating but improve how lenders see you, and they're the ones who will assess you for your mortgage.

ItsComingRome

You'd be better off getting a credit card that doesn't charge you £36 a year.

PRAISETHESUN

As above, ignore the score and focus on demonstrating good credit history.

I also echo the comment about finding a fee-free CC - unless there's a good reason to pay a monthly fee (eg. you get benefits from holding the card such as insurances, etc) then there's no need to pay any money to improve your credit history.

One of the easiest ways to do this is to use your credit card to make your normal monthly purchases (groceries, petrol, etc), wait for a statement to be generated (don't pay off as soon as you make a purchase) and then pay off the statement balance in full every month. The monthly account fee isn't counted as "credit" so paying this will do nothing to improve your credit history. Paying off your existing loans will also improve your "affordability" in the eyes of lenders which is another important factor, so keep doing what your doing and get that loan balance down ASAP.

macman

It's due to the poor weather. Credit scores rise along with the temperature, and we've had a cold summer...