Increase credit score - credit card 26 October 2022 at 6:45AM in Credit cards 11 replies 348 views

mandy87w

Hi,

I have a credit card with small balance remaining but I’m not due any amount to pay this month as paid off big amount earlier this month. Do I clear the outstanding balance or leave it on there until my credit score renews next week? Balance is less than £20. I want to increase my credit score. Or do I spend more?

Thank you 

MorningcoffeeIV

Don't try to change or track the credit score. It serves no purpose and will only make you anxious.

Use your card and clear in full once you get the statement and before the due date .

400ixl

Your credit score in meaningless in the UK. Other than the reference agency that creates it, no one sees it other than you. All of the credit providers use the raw data and look at their own criteria.

Credit score only means anything in the US, which is where the CRA's would like the UK to go, but we haven't.

Ensuring you are paying more than the minimum required payment and are not using a high proportion of your available credit, ensuring you miss no payments and have no CCJ's are the main criteria that lenders will be looking at in order to calculate your affordability.

Ebe_Scrooge

mandy87w said:

I have a credit card with small balance remaining but I’m not due any amount to pay this month as paid off big amount earlier this month.

I'm not quite sure what you mean by this.  Your statement will tell you how much to pay - either the minimum amount, or the full balance that shows on the statement.  Are you saying the statement shows zero balance, and the £20 you've spent will appear on next month's statement?

The best way to use a credit card is to use it for regular spending, and always clear the balance in full each time the statement comes through.  This means you won't pay any interest, and also builds up a favourable credit history.  It's your credit history that counts, the score is - as previous posters have said - utterly irrelevant.

[Deleted User]

Ebe_Scrooge said:

mandy87w said:

I have a credit card with small balance remaining but I’m not due any amount to pay this month as paid off big amount earlier this month.

I'm not quite sure what you mean by this.  Your statement will tell you how much to pay - either the minimum amount, or the full balance that shows on the statement.  Are you saying the statement shows zero balance, and the £20 you've spent will appear on next month's statement?

The best way to use a credit card is to use it for regular spending, and always clear the balance in full each time the statement comes through.  This means you won't pay any interest, and also builds up a favourable credit history.  It's your credit history that counts, the score is - as previous posters have said - utterly irrelevant.

I think what OP means is that they have say a balance of £1000 and paid £800 thus more than the minimum and don't need to pay anything more to avoid a charge but still hold a balance.

Regardless Mandy, if you want to build a good credit history then you should be paying off the balance in full every month, spend, pay, repeat. Leaving a balance on the card and paying interest harms your rating (how lenders see you, ignoring the fake score) as it looks like you cannot afford the life you lead 

Ebe_Scrooge

Deleted_User said:

Ebe_Scrooge said:

mandy87w said:

I have a credit card with small balance remaining but I’m not due any amount to pay this month as paid off big amount earlier this month.

I'm not quite sure what you mean by this.  Your statement will tell you how much to pay - either the minimum amount, or the full balance that shows on the statement.  Are you saying the statement shows zero balance, and the £20 you've spent will appear on next month's statement?

The best way to use a credit card is to use it for regular spending, and always clear the balance in full each time the statement comes through.  This means you won't pay any interest, and also builds up a favourable credit history.  It's your credit history that counts, the score is - as previous posters have said - utterly irrelevant.

I think what OP means is that they have say a balance of £1000 and paid £800 thus more than the minimum and don't need to pay anything more to avoid a charge but still hold a balance.

Ah yes, makes sense.

OP, if this is indeed the case then remember that you'll be charged interest on the full statement balance, not just the small amount that's remaining.  You really should be aiming to pay off the full balance every month - both to build a favourable credit history and to avoid paying any interest.

cymruchris

A £20 balance isn't going to make no difference to your mythical magical score. For a positive credit history (which is what you want) just make sure that payments are always made on time, preferably for significantly more than the minimum amount, even better if in full, and that repeated behaviour will demonstrate that you're not reliant on credit for any future financial applications.

dresdendave

Regardless of the effect on your credit history, not paying that final £20 will mean you are charged interest on the unspecified "big amount" you have already paid off. 
Get it paid!

cymruchris

dresdendave said:

Regardless of the effect on your credit history, not paying that final £20 will mean you are charged interest on the unspecified "big amount" you have already paid off. 
Get it paid!

Good call!

mandy87w

Ebe_Scrooge said:

mandy87w said:

I have a credit card with small balance remaining but I’m not due any amount to pay this month as paid off big amount earlier this month.

I'm not quite sure what you mean by this.  Your statement will tell you how much to pay - either the minimum amount, or the full balance that shows on the statement.  Are you saying the statement shows zero balance, and the £20 you've spent will appear on next month's statement?

The best way to use a credit card is to use it for regular spending, and always clear the balance in full each time the statement comes through.  This means you won't pay any interest, and also builds up a favourable credit history.  It's your credit history that counts, the score is - as previous posters have said - utterly irrelevant.

Hi yes balance shows less than £X and this won’t show on until next statement but I cleared quite a lot earlier on this month.

mandy87w

Thanks guys!