How to use credit cards to boost credit score

inthezeroroom

OK, let me be the first to address the elephant in the room:

"As a married couple we're basically debt free aside from our mortgage."

Why on earth wouldn't you want to keep things that way?

cymruchris

inthezeroroom said:

OK, let me be the first to address the elephant in the room:

"As a married couple we're basically debt free aside from our mortgage."

Why on earth wouldn't you want to keep things that way?

Maybe because they want a big financial purchase/remortgage in the near to medium term, and a better history will usually result in better rates offered.

Credit cards offer protection for large purchases that other methods don't.

There are also benefits to spending on your credit card if for example you're travelling with forex free, interest free cash advances and purchases.

Some cards offer cashback and points - and although small in value - they soon add up if you use your cards to buy your everyday things and pay off in full.

Credit isn't always about debt.

Brie

I get what the OP is saying and I do agree up to a point.  The more things one does that improve one's credit record then, yes, there's the potential that this will be reflected in a higher credit score.  I think as a general indicator it's fine, as long as you're not paying to see it.

But the crucial bit that keeps getting pounded on is that a bank won't look at the credit score, whether it's good, bad or indifferent.  The bank will look at the credit history.  If the bank can see that you have a reasonable amount of available credit compared to your income and that you are using that credit responsibly then it's all fine.  

If the credit score flags a problem, as it has to the OP, then great because they then came here for some advice on how to rectify the situation.  

badmemory

The credit score is pretty much a joke.  I agree use a (preferably cash back or similar) credit card & pay off in full by DD.  My credit score goes up and down depending on how much I spend on my credit card every month.  So the shopping bill is higher this month credit score goes up if it is lower credit score goes down.  Don't pay it off & I suspect credit score goes down but as I have never done that I wouldn't know.  I don't care about the credit score but I like the cashback.