Credit Utilisation - scores down

Samat2023

I am using a credit card of having limit 2000 pounds. I always use the credit card for all shopping. Every evening, I pay back to the credit card which I have utilised that day. So usually, my credit card balance will always retain above 1950 pounds.

Today when I check my credit score, I have seen a negative impact in the report. The report says, as below image,

I could not understand what this negative impact means for, and how to improve it. Please help

Nasqueron

Ignore the fake score. 

Can you clarify what you mean about your balance being above £1950? Do you mean your available credit is £1950 i.e. you have £50 on the card or do you owe £1950?

By paying off the CC the day you spend on it, you are harming your credit history as it appears the card is not used, this is not the way CC are meant to be used, particularly in terms of having a good credit history - not the nonsense numbers. Pay on the CC, wait for the statement, pay off in full every month by direct debit - that will build a history of good credit use. You might as well use an account like Chase and get cashback for card spending

Please also read the prominent sticky topic at the top (right next to where you clicked "Create New") 

What your Credit Score really means - Please read first before posting about a credit score issue.

As it already covers what you are asking

cymruchris

You have to spend on the card over the month - get the statement for the amount you've spent - then pay the statement balance in full. (Direct debit is best)

The records will then show you spent £X - paid £X - and everything balanced paid in full.

At the moment you're spending/paying/spending/paying immediately - so that when the statement is produced there's little to no balance to report, so the credit reference agencies think you haven't been using your card.

macman

Completely pointless. You might just as well put your shopping on a debit card. The only benefit you are getting by using a CC is S75 protection.

FreeFallerSaver

In addition to the points above regarding you not building up a credit history, paying your balance off at the end of each day is completely missing the point of what a credit card is designed for.