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Credit card / improving credit rating

(9 Posts)
dreamcatcher44uk Thu 03-Jul-14 23:55:32

I have got my first credit card to help try and build my credit.

I have 12 months interest free.

Is paying the minimum payment OK or is it better to pay it off completely each month.

Cindy34 Fri 04-Jul-14 00:39:40

Pay as much off each month as you can.
I would have thought that they will be looking for a good payment history, so spending on the card, paying it off.
Always always pay more than the minimum payment. Debt will escalate if you rack up spending on it and only pay minimum.

Pinno Tue 08-Jul-14 20:08:27

Hi, I used to work in a bank. What you're doing makes sense as companies like to be able to see how well you manage your debt. BUT...DO NOT spend on it what you haven't got. Use it for a few things you would ordinarily buy and pay off IN FULL each month. Arrange your direct debit to do that so you don't have to worry. If you get used to just paying the minimum the 12 months will whizz by and you'll have debt that you're accruing interest on at massive rates. I've seen this happen such a lot. Your doing exactly the right thing to manage your credit rating so be as clever with your spending / paying it off.

Lent1l Wed 09-Jul-14 06:14:32

I use my credit card for most things each month, rather than paying cash or using a debit card. I have a self imposed spending limit each month that I know I can afford to pay off. I log in to my credit card online regularly through the month to keep an eye on how much I've spent and then adjust my spending if I've gone a little mad.

As my cc runs from the start to the end of a month and im paid at the end of a month I then pay it off in full when I'm paid and start the process again.

Lent1l Wed 09-Jul-14 06:14:49

I use my credit card for most things each month, rather than paying cash or using a debit card. I have a self imposed spending limit each month that I know I can afford to pay off. I log in to my credit card online regularly through the month to keep an eye on how much I've spent and then adjust my spending if I've gone a little mad.

As my cc runs from the start to the end of a month and im paid at the end of a month I then pay it off in full when I'm paid and start the process again.

TalkinPeace Wed 09-Jul-14 13:23:35

Spend and clear
PAY NO INTEREST

beccajoh Wed 09-Jul-14 13:27:32

Paying in full can make you too good for many companies. They sometimes refuse because you won't make them any money if you're too squeaky clean! Generally speaking, though, paying off in full is a good idea.

Cindy34 Thu 10-Jul-14 08:59:02

I wonder how much of the transaction charge (that retailers pay to be able to accept credit cards) goes to the card issuer. A small amount I expect but I do expect they get some of it. So as long as you are using the card, they surely make some money.

Though I do expect some card issuers don't like it but its up to them if they issue a card or not, plenty of other providers.

TalkinPeace Thu 10-Jul-14 11:23:55

REtailers card fees are around 2.5% of the value of all transactions of which around 1% is paid in fees to the users card company

card companies make an effing fortune, they just make LESS from people like me who pay no interest

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