My aim is to buy house in three years time So I started searching for the ways I can get mortgage for the house. I found out that I need good credit score to get mortgage along with other things such as down payment and regular income. Then, I learned that credit card can be used as tool to increase the credit score and build credit history.
I am quite well-off financially and do not necessarily need the credit card to do any shopping (so I did not have any). I keep on top on my finances all the time so there is no excuse for missing payment of the credit card.
I have been approved Barclaycard UK (my first credit card) with 34.99% APR with the credit limit of £1200 that includes cash limit of £350. So my question is if anyone can tell me how much I should spend ideally (minimum and maximum amount) to increase my credit score though I can easily pay the full amount on time. What kind of things can I buy with the credit card?
Even though, some people would say that you do not need a credit card to get mortgage but I learned that having a credit card and having it used wisely over a period of time does make a difference; when my cousin who had everything except credit card was refused twice for the mortgage. So I want to prepare for it early.