Minimum vs partially vs Full Payoff credit card

bhjm
bhjm Posts: 341 Forumite
First Anniversary First Post
in Credit file & ratings
Hi,

not sure if you can help me.

for credit score - i know its just a number ;) - but what would have the biggest affect on my score?

paying my credit card off in full before statement
paying my credit card off in full after statement
paying my credit card off partially - but more than the minimum
paying my credit card off - the minimum only

any ideas?
«1

Comments

  • badmemory
    badmemory Posts: 7,788 Forumite
    First Anniversary Name Dropper First Post
    If the aim is to show that you can handle credit then "paying my credit card off in full after the statement". Before statement usually means the spending will not show so a waste of time, paying part only means you spent too much & couldn't pay it back. Although being prepared to pay interest will make the credit card co happy.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Biggest effect on score would be to mix it up - minimum payment, the full, then late and so on. Credit scores react negatively to change so that should get it bouncing around nicely.

    Best for how lenders view you is to clear in full each month once you've received the statement.
  • bhjm
    bhjm Posts: 341 Forumite
    First Anniversary First Post
    Deleted_User wrote: »
    Biggest effect on score would be to mix it up - minimum payment, the full, then late and so on. Credit scores react negatively to change so that should get it bouncing around nicely.

    Best for how lenders view you is to clear in full each month once you've received the statement.

    interesting points !
  • Lewys
    Lewys Posts: 15 Forumite
    Deleted_User wrote: »
    Best for how lenders view you is to clear in full each month once you've received the statement.

    Serious question; wouldn't they then see you as a less attractive customer, as you'd not make them any money? Or far less than someone who only pays some of the balance of.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    You'll make them some money but also offer stability.

    You certainly shouldn't have have any issues being accepted by mainstream lenders, although the sub prime players may be less keen.
  • bhjm
    bhjm Posts: 341 Forumite
    First Anniversary First Post
    Lewys wrote: »
    Serious question; wouldn't they then see you as a less attractive customer, as you'd not make them any money? Or far less than someone who only pays some of the balance of.
    i think for credit card lenders - they would like minimum only and get after the interest free time some interest, for the rest they would see most likely a steady clear all off from the statement.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
    3 or 4 if you want to waste money on paying credit card interest for the sole purpose of showing lenders that you are unable to make full repayment of the balance each month and are getting into debt. If you want to make yourself attractive to the issuers of high interest credit builder/bad credit cards choose this option.
    2 if you want to show lenders that you are not getting into debt and are able to live within your means and repay in full every month. Choose this option if you don't want to waste money on paying interest and want to make yourself attractive to mainstream credit card issuers.
    1 is foolish and should not be considered.
    And forget about the score as IT IS MEANINGLESS.
  • bhjm
    bhjm Posts: 341 Forumite
    First Anniversary First Post
    Ben8282 wrote: »
    3 or 4 if you want to waste money on paying credit card interest for the sole purpose of showing lenders that you are unable to make full repayment of the balance each month and are getting into debt. If you want to make yourself attractive to the issuers of high interest credit builder/bad credit cards choose this option.
    2 if you want to show lenders that you are not getting into debt and are able to live within your means and repay in full every month. Choose this option if you don't want to waste money on paying interest and want to make yourself attractive to mainstream credit card issuers.
    1 is foolish and should not be considered.
    And forget about the score as IT IS MEANINGLESS.

    right - and for the debt which is still in the interest free period? i am not wasting money on interest ;) was more like a short term loan i could faily use. so i used the money for now and stoozed it into some savings.

    and as i mentioned in my opening post - "for credit score - i know its just a number"
  • vacheron
    vacheron Posts: 1,603 Forumite
    Name Dropper First Anniversary First Post Photogenic
    edited 5 June 2018 at 3:01PM
    I have a lot of 0% cards and repay just the minimum on all of them until the promotion periods are over.

    When I increased the number of cards from 7 to 10 a couple of months ago, adding over £25k to my unsecured liability in the meantime, my score dropped from a fictitious 999 (excellent) to a fictitious 711 (poor).

    2 months later, (having maxed out all of these cards with an extra 25K, but with two months of minimum repayments on record), my score has increased to "either" a fictitious 904 (Barclaycard free Experian score) or a fictitious 922 (MSE Credit Club Experian score).

    This increase has occurred despite me changing bank accounts during this time and being accepted for yet another 0% card from First Direct despite an MSE affordability score of "Very Poor" for both credit card and loan affordability.

    Also, if you look at the link to the two scores below which I have just generated, the 904 score shows a higher mark on the "speedo" dial than the 922 score. This should tell you everything you know about how utterly worthless the whole score is! :rotfl:

    My MSE Experian Score

    My Barclaycard Experian Score
    • The rich buy assets.
    • The poor only have expenses.
    • The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
  • bhjm
    bhjm Posts: 341 Forumite
    First Anniversary First Post
    vacheron wrote: »
    I have a lot of 0% cards and repay just the minimum on all of them until the promotion periods are over.

    When I increased the number of cards from 7 to 10 a couple of months ago, adding over £25k to my unsecured liability in the meantime, my score dropped from a fictitious 999 (excellent) to a fictitious 711 (poor).

    2 months later, (having maxed out all of these cards with an extra 25K, but with two months of minimum repayments on record), my score has increased to "either" a fictitious 904 (Barclaycard free Experian score) or a fictitious 922 (MSE Credit Club Experian score).

    This increase has occurred despite me changing bank accounts during this time and being accepted for yet another 0% card from First Direct despite an MSE affordability score of "Very Poor" for both credit card and loan affordability.

    Also, if you look at the link to the two scores below which I have just generated, the 904 score shows a higher mark on the "speedo" dial than the 922 score. This should tell you everything you know about how utterly worthless the whole score is! :rotfl:

    My MSE Experian Score

    My Barclaycard Experian Score

    i must admit - a brilliant post :rotfl::T

    so the score is more about how good you are for the credit company rather how trustworthy you are for a loan...
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