Managing debt successfully 'helps improve credit history'

Consumers who have a successful track record of managing debt may be more likely to qualify for the best credit card deals than those with no debt at all.

This is the claim of My Finances, which says responsible use of plastic cards can help build a good credit history.

According to the website, one way to demonstrate an ability to manage debt sensibly is to get a credit card which provides cashback or reward points.

"Use it to buy your groceries each month and then pay off the balance in full," My Finances advises.

"That way, you're building a good credit history and get all the enjoyment of spending your cash or reward points."

Last month, David Rodgers, managing director of Debt Advice Foundation, called on consumers to improve their credit habits.

He warned consumers who currently "hop" between different zero per cent credit cards that they may face difficulties if annual usage charges are introduced by the industry.

Moneyextra.com recommends you take independent financial advice before acting on any article

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2009-12-01 14:53:01 © Moneyextra.com