Paying Amex balance before statement
Little_Bunny
Posts: 64 Forumite
in Credit cards
Hello,
I recently got the BA Amex card with a £10k credit limit. To avoid paying any interest, I'm being pretty obsessive in paying my bill immediately i.e. whether a pair of designer boots (naughty I know
) or a coffee at Costa, go in and pay it off - well maybe not after every transaction but within the week certainly.
My first statement ever is apparently going to come out on the 5th March, but I have already received approximately 800 Avios points so I am spending a reasonable amount I guess and which has all been paid off before receiving my first statement.
However I was reading this forum this morning and someone said something along the lines of that this is actually bad and I should wait until the statement comes out. Can someone please explain why that is the case? I'm nervous that I will spend and then be in problems come statement time but now I know I spend X because I have X to pay it off straight away. Or should I just put that money into a separate account and use it to pay off the statement once that is released?
Much appreciated
LB
I recently got the BA Amex card with a £10k credit limit. To avoid paying any interest, I'm being pretty obsessive in paying my bill immediately i.e. whether a pair of designer boots (naughty I know
) or a coffee at Costa, go in and pay it off - well maybe not after every transaction but within the week certainly.My first statement ever is apparently going to come out on the 5th March, but I have already received approximately 800 Avios points so I am spending a reasonable amount I guess and which has all been paid off before receiving my first statement.
However I was reading this forum this morning and someone said something along the lines of that this is actually bad and I should wait until the statement comes out. Can someone please explain why that is the case? I'm nervous that I will spend and then be in problems come statement time but now I know I spend X because I have X to pay it off straight away. Or should I just put that money into a separate account and use it to pay off the statement once that is released?
Much appreciated
LB
0
Comments
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The problem with paying the card off before the statement is that the credit card company will never report a balance to the credit agencies and therefore you're not building a credit history. The idea of reporting the balance and payment status to credit agencies is that you're showing that 1) you have a balance, and 2) are up to date with payments, but the way you're doing it just looks like you're not using the card at all so other companies examining your file in future are none the wiser as to whether you can be trusted to make repayments.0
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Hi anythingbutordinary,
Thank you, this makes sense. I will just keep the money aside and pay it off at the appropriate time ... it’s just it gets a bit unnerving because I am spending a fair bit as getting those Avios points is quite addictive (lol sad I know).
Many thanks for replying,
LB0 -
Just set up a direct debit to pay the whole balance each month - making sure you have sufficient funds in your bank account to pay - job done!0
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You want to see how I pay mine.....20 tiny transactions to get my £5 cashback from TSB! And then I leave 50% of it to go through as a direct debit.0
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