paying off credit card early?

Jonno118

If you pay off your credit card before you get your monthly statement would there be any problems in doing this?

thanks

jollyme

Not so far as I am aware. I've certainly done it , particularly when going on holiday and I know that I shall miss both the statement and then possibly the payment date - or have no money to pay the statement .
Of course if it's a regular thing then I would request a change in the statement date.

mumbot22

That would be fine - just make sure you have paid the right amount. I overpaid and had money left on the card. I have also underpaid, assumed Id paid it off and got charged.

teffers

I've done this constantly for many years as I use the online account services of my cards.

bengal-stripe

teffers wrote: »

I've done this constantly for many years as I use the online account services of my cards.

It's not a good idea to do that on a regular basis.

You buy something on the 10th and pay it by the 15th: your statement issued on the 20th will show a zero balance and no payment due. Your statement looks as if you had not used the card at all.

Doing that regularly: on your credit report it will show-up as an unused card and if your card provider wants to close dormant accounts, your account is likely to come up in a computer search, as month after month your account shows zero turnover.

Paul_01

This wouldn't actually show as zero turnover to the credit card company, but may look like this on your credit file, which may or may not be an issue.

thenudeone

It's slightly better for your credit file to show a series of "paid on time" markers than "zero balance", as it demonstrates you can handle your finances satisfactorilty.

mjr

It will likely also depend if you cleared the balance the previous month(s), if you didn't then even though you may pay off the current balance, there would be residual interest to pay when the statement is generated regardless of the earlier payment.

teffers

bengal-stripe wrote: »

It's not a good idea to do that on a regular basis.

You buy something on the 10th and pay it by the 15th: your statement issued on the 20th will show a zero balance and no payment due. Your statement looks as if you had not used the card at all.

Doing that regularly: on your credit report it will show-up as an unused card and if your card provider wants to close dormant accounts, your account is likely to come up in a computer search, as month after month your account shows zero turnover.

I understand what your saying (and it does make sense) but all I can say is, in my case I've had 3 credit cards, both starting at low credit limits, within 2 years the limits were a decent £1400 and £1800 (3rd card I closed myself) and I have never been contacted by any card issuer in regard to the way I've run my accounts or been asked to close any of them.

That's not to say my experience is typical but it's not something I'm aware of adversley affecting my credit file so far either. Looking at my current file it simply shows each month as being paid on time and not 'dormant' etc.