Does it improve your credit rating to use a CC and repay in full each month

[togetsomeperspective]

I've finally cleared my credit card (whoop) and whilst I don't want to run up a big bill again, I was wondering if I should still use it, if I can clear it in full ( as won't spend the money twice if that makes sense ?!)

Will it improve my credit rating? We took a mortgage payment holiday due to Covid and to clear some debt and I'm sure that will have impacted my credit rating. We hope to borrow some more in a few years time for some home improvements and want to do save for that.

Yes it proves you can manage money

Yes!
We do this. Have two separate ones. One exclusively for food and one for petrol. Clear both every month. Great for improving your credit score but also good as you can keep any eye on how much your spending

What it will do is show you can manage money well and improve your credit history which is what any potential lender looks at.
The only person who sees the fictional number a CRA gives you is you.

Yes. Especially if the alternative is occasionally going into overdraft each month, which banks see as a very bad thing even if it doesn't cost you anything.

Plus if you do use it as an alternative to an overdraft, it saves you money as overdrafts are charged at a very high interest rate but credit card is free as long as you clear it every month. Set up a direct debit for the full amount so you never forget to pay.

I have been told this by many people, so believed it to be true. However, I have a very high credit rating according to Experian, and I never use a credit card!

@plantfolk

I have been told this by many people, so believed it to be true. However, I have a very high credit rating according to Experian, and I never use a credit card!

But you have used some form of credit?

using a credit card is just one way of building up a credit history. ...OP providing you don't miss payments so do set up a DD

Credit rating means nothing. It's your history of repayment and the amount of debt to available credit that matters. Having a clean record with no late payments, defaults and CCjs are what the lenders care about

@Dazedandconfused10

Credit rating means nothing. It's your history of repayment and the amount of debt to available credit that matters. Having a clean record with no late payments, defaults and CCjs are what the lenders care about

Are they not the same thing?

My credit rating is below average despite never having missed a payment. It recommends that I get a credit card to boost it.

@toomanyspiderplants rating is the number on which ever agency's report you are looking at and is meaningless. The history is the solid evidence of repayments and keeping credit lines clean.

Use credit karma
It's free and a basic outline.
Set it up and then get a card to see if it improves