Credit scoring

uqo64i

Hi all. I am in the nice position of having no outstanding debt. No loans, no credit card balance, no mortgage, and I’ve just paid off my car finance. I understand that this may have a negative effect on my credit score, as I’m not making regular payments to anyone. Any suggestions on what I could do to counteract this? I thought maybe maybe to pay for everyday essentials on a credit card, such as food shopping and petrol…remembering, of course, to pay it off IN FULL every month. Any other ideas or suggestions, people?
Many thanks.

Penguin_

Your credit score is a meaningless number - no one apart from you will see it.

FlorayG

I'm in the same situation. What I do is when I buy myself a luxury or just-felt-like-it item I put that on my CC then pay it off at the end of the month. That's maybe 6 - 7 items a year, anything from £50 to £500 at a time
I tried the cc for everyday goods thing but it didn't work for me because I kept losing track of how much money I actually had available in my cash account

Mark_d

Other than mortgage I have no debt's either but there are several items on my credit report - current account, credit cards (paid in full each month by DD), energy supplier, mobile phone contract.

Why are you concerned about your credit report?  Are you looking to take out a new credit agreement?

uqo64i

Thank you for your reply. No, I’m not taking out any credit any time soon. I just don’t know to what extent my situation will affect my score, just in case I do need to apply for credit at some point in the future.

Desmond_Hume

Penguin_ said:

Your credit score is a meaningless number - no one apart from you will see it.

Saying it again, a bit louder, for those at the back. 

Nasqueron

uqo64i said:

Thank you for your reply. No, I’m not taking out any credit any time soon. I just don’t know to what extent my situation will affect my score, just in case I do need to apply for credit at some point in the future.

lenders do not use or even see the gimmick number you see, don't worry about it

PRAISETHESUN

I echo the comments above about the score/rating.

If you are concerned about maintaining credit history, then you obviously need to keep some form of credit going. Easiest way would be to get a credit card and use it for all your day to day spending that you'd normally put on your debit card. Pay off the balance in full every month (set up a direct debit from your current account so you won't forget). Lenders will see a credit balance is being utilised and paid off on time, and you won't be charged interest.