Vanquis credit card

17
Posted 14th Oct
Hello,

I’ve just gotten my first credit card for building up my credit score. I’ve done some research online and i am getting two different views on what to do for the same thing.

Should I use as much credit per month as possible or as little as possible ? Which one will help me grow my credit faster?

Keeping in mind I’ll only purchase what I need and what I can afford. The card will be pain in full and on time.

Thanks
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17 Comments
Don’t spend more than half your credit limit, even if you pay it off in full every month, If they search and your over 50% of limit it doesn’t look good
As already stated keep it below 50% of your limit and clear in full each month
Bargainhead14/10/2019 21:34

Don’t spend more than half your credit limit, even if you pay it off in f …Don’t spend more than half your credit limit, even if you pay it off in full every month, If they search and your over 50% of limit it doesn’t look good


Mark_Hickman14/10/2019 21:40

As already stated keep it below 50% of your limit and clear in full each …As already stated keep it below 50% of your limit and clear in full each month


What's the theory behind only use 50% of limit? On initial thought that course of action may be detrimental to the debtor as any unused existing line of credit eats into the affordability for other credit, so may actively prevent the debtor from qualifying for other financial products which would negatively impact on the debtor's credit file.
AndyRoyd14/10/2019 21:48

What's the theory behind only use 50% of limit? On initial thought that …What's the theory behind only use 50% of limit? On initial thought that course of action may be detrimental to the debtor as any unused existing line of credit eats into the affordability for other credit, so may actively prevent the debtor from qualifying for other financial products which would negatively impact on the debtor's credit file.


If you use more than 50% it looks like you cant control your spending and you get seen as a risk
Mark_Hickman14/10/2019 21:40

As already stated keep it below 50% of your limit and clear in full each …As already stated keep it below 50% of your limit and clear in full each month


Bargainhead14/10/2019 21:34

Don’t spend more than half your credit limit, even if you pay it off in f …Don’t spend more than half your credit limit, even if you pay it off in full every month, If they search and your over 50% of limit it doesn’t look good


I’ve been to use little credit but at the start use as much as possible. This is so that they will increase the credit available meaning I’ll be able to use less percentage wise but spend about the same. Therefore increasing the credit score a lot more in the long run
DragonX14/10/2019 22:01

I’ve been to use little credit but at the start use as much as possible. T …I’ve been to use little credit but at the start use as much as possible. This is so that they will increase the credit available meaning I’ll be able to use less percentage wise but spend about the same. Therefore increasing the credit score a lot more in the long run


You dont need to spend a lot to get your limit increased just clear your balance for 4 payments i think it was with vanquis
Mark_Hickman14/10/2019 22:00

If you use more than 50% it looks like you cant control your spending and …If you use more than 50% it looks like you cant control your spending and you get seen as a risk


I'd suggest the opposite: in OPs case all the spend is to be paid off each month which shows that the accountholder can contol their spending and handles the account responsibly.
AndyRoyd14/10/2019 22:06

I'd suggest the opposite: in OPs case all the spend is to be paid off …I'd suggest the opposite: in OPs case all the spend is to be paid off each month which shows that the accountholder can contol their spending and handles the account responsibly.


It works the opposite way they see you max it out each month like your desperate for money
Mark_Hickman14/10/2019 22:07

It works the opposite way they see you max it out each month like your …It works the opposite way they see you max it out each month like your desperate for money


But so desperate for money it's completely paid off each month? You seem to be not considering the debtor's affordability. Maybe we need to see a creditor's lending actuaries, although if it's like a creditor's ideal lending algorithm it will be biased towards obtaining maximum return for the creditor (debtor paying interest) not maximum beneficial impact on the debtor's credit file.
AndyRoyd14/10/2019 22:13

But so desperate for money it's completely paid off each month? You seem …But so desperate for money it's completely paid off each month? You seem to be not considering the debtor's affordability. Maybe we need to see a creditor's lending actuaries, although if it's like a creditor's ideal lending algorithm it will be biased towards obtaining maximum return for the creditor (debtor paying interest) not maximum beneficial impact on the debtor's credit file.


What do you mean, i seem to be not considering ? The info ive given is how the credit reference agencies and lenders advise you to use it and state going close to the limit impacts your lending suitability negatively, its not my opinion or guessing
Mark_Hickman14/10/2019 22:26

What do you mean, i seem to be not considering ? The info ive given is how …What do you mean, i seem to be not considering ? The info ive given is how the credit reference agencies and lenders advise you to use it and state going close to the limit impacts your lending suitability negatively, its not my opinion or guessing


I'm not suggesting anyone is guessing, it's just that I've seen the suggestion of "50% is best" linked to credit rating numerous times but not a credible source from a CRA, just another unqualified (but likely well-intentioned) re-quote. Do the CRAs keep best practice to increase score a secret? Don't know, I have not not researched it, I just haven't seen a CRA state it, yet. What I can see is the payment performance recorded by the CRA on what is lent & repaid and specifically the amount and timing of repayment is related to affordability.
Bargainhead14/10/2019 21:34

Don’t spend more than half your credit limit, even if you pay it off in f …Don’t spend more than half your credit limit, even if you pay it off in full every month, If they search and your over 50% of limit it doesn’t look good


Mark_Hickman14/10/2019 21:40

As already stated keep it below 50% of your limit and clear in full each …As already stated keep it below 50% of your limit and clear in full each month


DragonX14/10/2019 22:01

I’ve been to use little credit but at the start use as much as possible. T …I’ve been to use little credit but at the start use as much as possible. This is so that they will increase the credit available meaning I’ll be able to use less percentage wise but spend about the same. Therefore increasing the credit score a lot more in the long run


To debunk all previous myths: major UK CRAs and MAS state best to aim for max 25% / 30% credit limit utilisation, not 50%.
AndyRoyd14/10/2019 21:48

What's the theory behind only use 50% of limit? On initial thought that …What's the theory behind only use 50% of limit? On initial thought that course of action may be detrimental to the debtor as any unused existing line of credit eats into the affordability for other credit, so may actively prevent the debtor from qualifying for other financial products which would negatively impact on the debtor's credit file.


When checking credit reference agency’s they give possible factors effecting your score and one of them is going over 50% mark of all available credit. Have available credit shows you can manage debt so you will be given more, it’s doesn’t eat into affordability.
AndyRoyd14/10/2019 22:44

I'm not suggesting anyone is guessing, it's just that I've seen the …I'm not suggesting anyone is guessing, it's just that I've seen the suggestion of "50% is best" linked to credit rating numerous times but not a credible source from a CRA, just another unqualified (but likely well-intentioned) re-quote. Do the CRAs keep best practice to increase score a secret? Don't know, I have not not researched it, I just haven't seen a CRA state it, yet. What I can see is the payment performance recorded by the CRA on what is lent & repaid and specifically the amount and timing of repayment is related to affordability.



The state it in possible negative factors on your account, I’ve seen it, others must have as well if one person said it fair enough but it’s not just one person. I was near my limit on 1 card and owed nothing on my others, but only got mid range on credit score, with them starting that as possible factor. As soon as I went under 50%, well within a month or two my score is perfect now. Now I just pay everything every month off completely and it doesn’t eat into available credit as the keep raising my limits and offering me deals on rates to get me into debt.

AndyRoyd15/10/2019 04:02

To debunk all previous myths: major UK CRAs and MAS state best to aim for …To debunk all previous myths: major UK CRAs and MAS state best to aim for max 25% / 30% credit limit utilisation, not 50%.



So basically you were commenting on something you new nothing about, before research lol.
Edited by: "Bargainhead" 15th Oct
My opinion is that a credit card is designed to spread the cost of large purchases, not for day to day living. Using this criteria I would (did on my first card) make one large purchase and pay it off in full over three months. This showed (again my theory) that I could budget correctly.
The finance company already have access to your financial records so shuffling around credit is pretty pointless - they've been in the business longer than you and have seen every trick in the book - they check your finances for affordability and want to see that you can budget the repayments on time.
Bargainhead15/10/2019 06:15

...So basically you were commenting on something you new nothing about, …...So basically you were commenting on something you new nothing about, before research lol.


Heck yeah. The seemingly glib and unsubstantiated earlier comments seemed implausible, hence my suggestion of alternative viewpoint and suggestion for citations. That approach was substantiated, but not by the alternative viewpoint offered.
As @Ringfinger says, buying a large value item and paying off over 3 months would be a good idea.
I did this with my vanquis card with 3 separate purchases over 12 months.
After this I was offered an increase in credit limit & received offers through the post from other credit card companies offering me pre approved cards.
So, I would say it’s a good starter card.
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