When you start with a credit card, you’ll be allowed to borrow a monthly amount to spend on things you want. You could think of having a credit card as a ‘test’ — borrowing small amounts shows credit providers what you’re like with money and will decide for them whether you should be approved for more in future. So the better able you are to control your spending habits now means the more credit options you’ll have in future.
The temptation may be to keep buying up to the limit (or over), which is greater when you don’t have a specific borrowed amount each month. Try setting yourself a goal to spend below the limit to make the most of your credit card. This adds positive repayment data, which is any payments that raise your credit score.
Number of cards.
The number of credit and other cards you hold is recorded on your credit history. Keeping a good credit mix means not taking out too many cards at once. A good mix may look like two credit cards alongside a personal loan and a mortgage — although you don’t have to keep this exactly.
Keep hold of all your bank statements or check online to track your repayments as they go through. You might even want to set reminders for upcoming bills or monthly interest repayments.
Your budget should allow some room in case something unexpected happens so that you have some funds available.
You might want to consider making a folder or a financial plan so that you can easily see which payments happen where. This plan could include ‘spending money’, which allows you the option to spend up to a certain budgeted amount each week or month on your card.