CC to improve credit rating/score/whatever.

WinstonTown · 26 May 2018 at 9:03PM

Evening! I have a question about credit scores/rating/whatever its called! I have joined the MSE Credit Club, and also have the Clearscore app. I thought I would 'give it a go' and applied for one of those credit builder CCs - and was accepted. With three CCJs, I thought my credit file was pretty bleak, so i wasn't really expecting to be accepted! The limit is only £300, so I won't get myself into trouble with it. So I have two questions:

1) Will spending a little each month, then paying it off in full, help towards improving my file? Or do I need to leave a small balance? The first four months purchases are interest free, but the APR is 34.9% after that.
2) Will it negatively impact my file if I refuse a credit limit increase on my card? I don't want to be tempted to spend what I cannot afford, as I'm working on clearing my other debts!

Thanks

WT

[Deleted User] · 26 May 2018 at 9:22PM

Use it, clear in full, accept increases unless you have no self control, control your spending urges and ignore your credit rating/score/whatever.

Time will do the rest.

WinstonTown · 26 May 2018 at 10:43PM

Fantastic, thank you

Dobbibill · 26 May 2018 at 11:02PM

1) paying off in full will demonstrate responsible behaviour with credit.

2) No, you do not have to accept credit limit increases. It will have no impact. (It probably won't be offered for the first 6 months anyway)

Ben8282 · 26 May 2018 at 11:16PM

Deleted_User wrote: »

Use it, clear in full, accept increases unless you have no self control, control your spending urges and ignore your credit rating/score/whatever.

Time will do the rest.

I agree. I would also suggest not taking advantage of the short 0% offer and clear in full from the first statement.

nic_c · 26 May 2018 at 11:40PM

Remember use it for normal spending that you would use a debit card for and keep that money in your account for the DD. The question though is can you leave money in your bank account without spending it. You need to know your personality when deciding how best to use credit to build your score.
If you don't think you can be disciplined enough, then getting a card to build credit score/history could back fire.

WinstonTown · 28 May 2018 at 4:27PM

Thanks for all the replies. I!!!8217;ll clear it before the next statement date and ignore it !!!55357;!!!56842;

msallen · 28 May 2018 at 6:29PM

WinstonTown wrote: »

Thanks for all the replies. I'll clear it before the next statement date and ignore it

Do NOT clear it before the statement. Wait for the statement and then clear it before the due date (a direct debit for the full balance is the best way if you can be trusted to make sure there is enough available in your bank account)

CC to improve credit rating/score/whatever.

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