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credit card

(9 Posts)
Needtoprotect16 Sun 24-Jan-16 08:49:04

I have a credit card in just my name but as yet not used it (tend to use mine and OH's card if need to).

Are there any negatives associated with having a credit card with a balance of zero for years? Should I spend and repay to notch up a personal credit history (in the event of me and OH separating?) He works full-time; me, very part-time

19lottie82 Sun 24-Jan-16 09:04:43

No negatives, no. But using it and paying the balance off in full apart from a very small amount, will help build your ability to get credit in the future. You don't want to spend and repay in full every month, as this will still just reflect a £0 monthly balance on your credit report, so even just leave £10 outstanding (making sure you pay min payments every month obviously).

19lottie82 Sun 24-Jan-16 09:07:27

PS if you separate then a personal account wouldn't make any / much difference on your credit rating, if you were running joint accounts as a couple at the same time, as all would merge into one, so to speak.

If you were to separate, you would go to all 3 credit agencies, financially disaccociate yourself, then start using your personal account to build your rating, if need be.

Needtoprotect16 Mon 25-Jan-16 02:17:38

Thanks for replying. So a better credit eating score is secured if you don't clear the balance every month? Not quite sure I understand that.

A further question I had was if people never spend on their credit card, do companies eventually cancel their card?

19lottie82 Mon 25-Jan-16 07:32:11

If you look at your credit file, it shows your monthly balance for each account. As you don't use your card at all it appears as £0. If you were to use your card and clear it in full every month then that amount would still appear as zero, so it wouldn't recognise you as "managing a balance". And this is what helps to improve your rating. Does that make sense?

As to your second question, I don't think so. There are plenty of people who have CCs for emergencies only.l and may not use them for years at a time.

annielostit Mon 25-Jan-16 12:52:38

If you don't use the card, the cc company will write to you, ask to use it in a set time or they close your cc account. Done to dh last year.

Zigazigah Mon 25-Jan-16 13:17:18

Lottie that is daft advice and completely wrong.

OP to build up your personal credit history use the card each month for something you would buy anyway (e.g. petrol), wait for the statement and then pay it off in full, every month by direct debit (to avoid missing payments by mistake). Your credit report will not just display zeros, it will report the statement amount each month, and the amount you have made as a payment.

There is absolutely no benefit to maintaining a balance on your card - all this will achieve is that you pay interest when you don't need too.

Additionally, there is no such thing as a joint credit card - so the one you and your husband share is likely his account with an additional card for your usage. This card will not appear on your credit report, and will not affect your credit history.

If you want real solid advice about credit cards head over to the Money Saving Expert website. Read their articles about how credit cards and credit scoring work, and ask any questions you have on their excellent forum.

Needtoprotect16 Mon 25-Jan-16 13:52:35

Thanks Zig, that makes sense

19lottie82 Mon 25-Jan-16 15:50:32

Zig...... I was given that information about not clearing the balance in full every month from MSE.com

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