Creating a credit history

CountingTheDays261128

Hi all.

For the last 4 or 5 years I have taken no loans and have kept my Credit Card statements clear at the point of creation. I realise now that this now means I have no record of being a good customer who can borrow responsibly and pay back reliably.

My question is, is the information sent to the credit reporting agency the statement balance on a credit card or the balance on the date they ask? I plan to use the card and leave a balance to appear for the statement then pay after it is created thus creating a credit history for the record.

Thanks in advance.

Emmia

Have you actually accessed your reports to look at them and what they contain? You could switch to just paying your cards off in full after each statement is generated, rather than paying off individual transactions.

CountingTheDays261128

Reports say I have low credit use as a bad thing. I plan to pay off in full after statement is generated. Don't want to pay off too quickly hence my original question.

On-the-coast

Low credit use is not a bad thing from your perspective…. It’s good! 

Only bad from the perspective of those looking to profit from your borrowings. 

CountingTheDays261128

On-the-coast said:

Low credit use is not a bad thing from your perspective…. It’s good! 

Only bad from the perspective of those looking to profit from your borrowings. 

I don't need any credit at the moment but when I applied for the Tesco credit card to use for the extra Clubcard points I would earn I didn't qualify for the "proper" card only the Foundation one with a £250 limit. It's going to take ages to earn a higher credit limit so I don't have to clear it several times during the month.

cymruchris

If you're in a position to clear in full every month - the best, and easiest way is to set up the credit card to take full payment by direct debit.

The statement will be produced, the figure reported to the CRA, and the payment taken to clear it.

I wouldn't faff around trying to get it all done manually, as that's how you've ended up in the position you're in - you have a very positive history as you've paying everything instantly - but that's not how the system works, and nobody sees what you've been doing (other than the card provider itself).

All you have to do is ensure the funds are in the current account for the direct debit to take them. Still check your statements as usual, mentally note what the payment will be - and let the automated process do the rest.

surreysaver

CountingTheDays261128 said:

Reports say I have low credit use as a bad thing. I plan to pay off in full after statement is generated. Don't want to pay off too quickly hence my original question.

Have you actually got your reports? They wouldn't have an opinion on them, they would just state what your borrowings and records are.
The best thing to do would be to use your credit card in the way it is designed to be used. Buy things with it, get the statement and have a direct debit set up to take the full payment every month. If your credit limit isn't high enough to cover your monthly spending, then you can make a payment, but make sure you always have a balance on your statement which is always paid off in full