Credit Building

How to build your credit history with a credit card

Aug 15, 2018

Expensive credit means credit cards are no good for borrowing, but using them sensibly can still help demonstrate creditworthiness to other lenders. Discover how in under two minutes – from the experts at LOQBOX.

Clear your balance every month

Rule number one. Using your card to make small purchases and clearing the balance at the end of the month shows future lenders you can manage credit. By clearing your balance you’ll also avoid interest and those sky high APR rates.

Stick to your normal spending

Only use the card for things you’d normally buy anyway. This way you don’t risk overspending on your card.

Keep track of your cash

If you’re spending on your card, it can be easy to overspend the cash in your current account on other things and not leave enough in the bank to pay off your card at the end of the month.

Check your chances with a soft search

Before your apply for any credit card, always check your likely chances of being accepted first or you can damage your credit history. Sites like or will tell you which cards you’re likely to get using a ‘soft search’ (that doesn’t show up in your credit history). And don’t worry about high APRs. You won’t be paying interest anyway (see point one above).

Follow these tips and a credit card can really help you step up your credit building efforts.

This post was written and compiled by the credit experts behind LOQBOX – a completely free way to build your credit history by saving a little each month. To sign up or read more about the clever way LOQBOX works, head to

This is part of our Two-minute Money blog series – unlocking the secrets of the financial system, two minutes at a time.

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