How do you build credit rating with a credit card?

9
Found 12th Feb
The plan is to build my partners credit score with a credit card so what’s the best way to do it?

Buy the weekly shopping with it and pay it back on the credit card then same day, buy the weekly shopping and pay it back the following week or buy the shopping and and wait until a statement comes in then pay it back.

The card will always be paid back in full but when is the right time to do it? Someone said if you pay back to quickly then it won’t register on your credit score.

Any other credit building tips is also appreciated, thanks.
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9 Comments
Personally I would say pay by direct debit the full statement balance. As I think they report back the balance at the time, so if you pay off before the statement the balance will be zero.

I would have though it would be better saying the balance is £200 and paid in full on the due date by direct debit.
Ensure that they are on the Electoral Roll at their current address . That gives the greatest immediate boost to a Credit rating .
I joined Clearscore, it coaches you on how to build up your credit score.
There are a few similar free companies like Clearscore but I prefer their app.
It helped in getting my credit score back to acceptable.
I'm not entirely sure that credit card use is that important to a credit score. I checked my score recently just out of curiosity and it was surprisingly high, I rarely buy anything on credit these days other than the usual service providers which are paid by dd and the last credit card I had was around 1995.
Edited by: "jaketheplumber" 12th Feb
Credit cards or catalogues can be good ways to build up a credit rating providing you pay them on time.

Get on the electoral role.

Pay for insurances and household bills on time via direct debit

All of the above should help to build a good score.

One other thing to bear in mind, if you have recently moved or move regularly this can affect your rating!

Having a landline can improve things too (Stone Age I know!!!)
jaketheplumber20 h, 27 m ago

I'm not entirely sure that credit card use is that important to a credit …I'm not entirely sure that credit card use is that important to a credit score. I checked my score recently just out of curiosity and it was surprisingly high, I rarely buy anything on credit these days other than the usual service providers which are paid by dd and the last credit card I had was around 1995.


It is important when you have a poor record.

Mine was very poor 3 years ago. So poor that I couldn't even get a £5 per month data sim on a rolling 30 day contract due to the credit check.

I slowly paid off debts listed on my file, then eventually managed to get a CC albeit with only £150 limit.

Move on to today and I have 3 cards with a total of £5500 line of credit and my score is a lot higher.

It takes time and patience to build or rebuild. A lot of people do not have the patience to do it.
The card balance is only reported to the credit ref agencies once monthly, based on the balance on whatever cyclic monthly day number the card issuer chooses. So do whatever you want with purchases & payments to have the figure you want on that day.
Consider many credit providers look beyond the credit score to see how you manage credit. A permanently reported balance of zero may imply you do not use your existing credit so that may be interpreted as a higher risk if applying for further credit elsewhere; whereas a modest balance being reported each month combined with no late or missed payments may imply you can manage your current credit and could effectively manage further credit. Different providers place different weightings on their products' eligibility criteria.
ccnp12th Feb

https://www.moneysavingexpert.com/loans/credit-rating-credit-score


This was a good read. Thanks
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