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I’m trying to improve my credit score and have now taken out a high interest Credit Card to start the ball rolling. my question is would my Credit score be better if I borrow more money for example:

If I just borrow the minimum for 6 – 12 months

If I borrow over £500 a month for 6 – 12 months

This may sound like a dumb question, but someone has told me the amount doesn’t matter.

Would you also suggest numerous credit cards?

3 Thoughts on Will my credit score go higher the more money I borrow ?
  1. Reply
    David W
    April 12, 2012 at 7:59 am

    the best way to improve your score is to borrow high amounts, and prove that you can pay them. The higher the limit you can prove to pay off, the higher your score will get over time – it kind of sets the bar.
    I wouldn’t borrow anything that you can’t fully pay off within the month if you can avoid it. But if, say, for one month you can put all your expenses on one of your cards, and pay off the entire thing before getting charged interest, you will raise the bar for your credit, and your score will follow with it.
    Maybe the next month, do the same thing with a different card, but make sure you can pay it off. After you show activity, it is not too important to keep the levels of borrowing high, but just make sure to make the payments.

    Multiple cards can help to an extent, but they don’t like to see alot of debt on several cards – that will lower your score. If you plan on not fully paying off your debt each month, I would recommend a maximum of 2 credit cards. American Express seems to work the best if you can get one.

    The best way to improve your credit fast is to buy a car or house and prove you can pay it off. Even if it is a small loan, ie you buy a 15k car and finance only 5 of it, it will help you more (and faster) than credit cards can.

  2. Reply
    April 12, 2012 at 8:48 am

    ya it will surely increse but pay that before the due date or else you are gone

  3. Reply
    April 12, 2012 at 9:36 am

    I’ll tell you what I know based on practice in the States.

    Different people have different credit profiles.

    In the US, people with FICO scores are placed on one of 10 scorecards. Fair Isaac is mum about what the scorecards represent, but one might be for the bankrupt. Another might be for those with an auto repossession.

    The mere number of credit cards that you have is a factor– but you will not find anyone who can tell you how many to have. I didn’t– even when I asked the credit bureau representatives in the US and UK– so I wrote an entire web site on that premise.

    In order for the credit card to have an effect on the score, you have to use it– and maintain a balance. The highest FICO scorers have an average balance of 7% of their aggregate credit lines.

    So, without knowing more, any absolute advice to you is presumptuous, but perhaps this will help: A young man improved his score– 676 to 804– in 11 months, and attributes it to his ever-increasing total available credit (and most importantly, the restraint to not use it).

    In the UK, Equifax says that you can buy the “Credit Rating” and “see the credit score most lenders use when qualifying you for a loan.” Included are, specific “tips on how to improve your credit score.”

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