Building up credit score

[Cakemonger]

I've got my first credit card so I can start building up a credit history. I know it's best to spend less than 25/30% of your limit then pay it off in full, but is it ok just to spend a tiny amount, eg £20 out of an allowance of £1000 - is this sufficient to build a credit history?

Sorry for the daft question - this is all new to me.

hopeful bump

As long as you pay off what you owe in full every month, you should be OK.

Forget about the 'score'. It's a meaningless number issued by the CRAs. You build a history of paying off your debts on time. If you are not on prepayment for your gas / electricity, if you are paying the bills in full and on time, you are already building a history.

I don't think the amount matter as long as it's not too much. They want to see that you can hold a credit limit without rushing out and spending all that 'free money' and then only cover the minimum payment.

I have seen people post that lenders view small limits as a red flag, because it makes them think that another provider thinks you can't be trusted, so once you've had the card a few months, perhaps ask for the limit to be increased to £2-3k. Then carry on as you were.

Doesn't always make sense, but you avoid being disadvantaged by not playing the game.

@IanOsenfrote @BarbaraofSeville Thank you for your replies. I basically avoided getting a credit card until the age of 35 due to fear of getting into debt but realise now that it is a necessary evil. I actually requested a lower limit to the one I was offered but sounds like maybe I shouldn't have done that.

Also, is there any truth to the idea that you shouldn't repay in full every month because lenders then think they won't make money out of you? I assumed this was a myth but there's something on moneysavingexpert about it.

I cycle round credit cards for the deals (borrow at 0% without a fee with the money in savings/premium bonds to compensate).

It's not really been worth doing over the last couple of years, but might be improving and I've currently got about £9k that I need to transfer soon and I'll make about £200 for a bit of admin if I get something like a 18 month 0% deal and hold the same amount in a Chase savings account.

I've been doing this for about 15 years, never paid a penny in interest or fees and also hold a couple of cashback cards for my day to day spending, which is paid off in full every month. I probably apply for at least one credit card a year on average and have never been rejected.

I have had my credit card with the same provider for 15 years and have always paid it off in full every month and I have had no problems at all.

Thanks all, good to know