If banks don't like you to pay in full.......

stringz

....then should I not do it?

At present I pay off my credit card in full every month. But i have read that this is not necessarily a good thing as banks/credit card companies will see that they won't make money from you. Therefore is it better not to pay in full every month?

I am thinking that maybe in future I should pay all but a small amount, and therefore the bank/cc will make something from me but not a damaging amount to myself. And as a result I would be a better prospect for credit in the future?

Or is this nonsense and I should just continue paying off in full every month?

[Deleted User]

The purported benefits of not paying in full are much in the distance for most people (mortgage acceptance, low rate credit card).

These in my opinion will be nullified by the real life, present draw backs, of paying interest for 'nothing'.

The only time I'd consider paying interest as such to benefit myself would be if it was a cash back card where it nullified one another.

This is MSE though, I very much doubt people on here are voluntarily paying interest without a much better reason than posted.

Any

I play the game for years now and I had never paid interest until last year (when I used my MBNA low LOB offer instead of taking out loan for home improvements).

Over the years I had 15 accounts and did not get refused yet.

So no, I don't think I would pay interest just for the sake of it.

Eydon

And don't forget that if you pay "all but a small amount" then you will be charged interest on the entire statement balance and not just the bit that you didn't pay off.

I'm with Any on this one. I've had credit cards for over 20 years and in all that time you can count on the fingers of one hand the times I've paid interest (usually due to my forgetfulness rather than any form of intent) and I've never had problems getting new cards or had cards cancelled by the issuer.

stringz

sounds pretty conclusive to me. I'll carry on as i have been.

I am surprised that you get charged interest on the entire statement amount and not just the amount that was left over unpaid. I definitely won't be doing this then.

Thanks for all your knowledge and advice.

KingElvis

Everytime you use a credit card, the provider gets a merchant fee, some stores charge you this as a "surcharge" and some just absorb it.

Upshot? they get money from you using it even if you don't pay interest, seems barking noodle doodle to me to pay extra good money to them for no reason.