Question on bad-credit rating cards

andyh321

Question on bad-credit rating cards

If I get one (due to being in massive amounts of debt) If I buy food and work expenses on it, do I have to wait for statement to come through before paying off or can you literally pay the credit card off as the same day as purchase.

Also – does anyone recommend a payment plan?

CLAPTON

if you are in massive debt why do you want (another) debt?


but if he had a CC then it is best to wait until you get the monthly statement and then pay that in full as then you will pay no interest.

you can pay as you go along but there is no benefit to you for this and can cause confusion; why do you wnat to do that?

what do you mean about a payment plan ..for what?

camuk81

Andy,

You can pay it off at any time.

As regards the payment plan make sure you check out with pay plan and CCCS as they are free services

Simon7685

If you use it and then pay it off the same or next day, then it is of no benefit to you and will not really improve your credit rating. It also seems a bit pointless really to be honest, as suggested if you want it to improve your credit standing, use it then pay in full as soon as you get the statement. My personal advice, don't wait for the payment date, that's where it can all start going wrong. Pay as soon as you get the statement, then it's done and nothing to worry about until next month. Also no interest to pay!

mancini601

You can pay off whenever you like but a word of advice....

If like me you want to pay off very quickly then at least wait a few days until your purchase has 'been fully applied' to your account.

I say this because I bought something once (white goods), waited a couple of days and then paid off the amount via internet banking. The problem here is that my payment was received by the card company before the debit transaction had fully cleared my account so I was effectively in credit by several hundreds. The card company went nuts. They blocked my card, accused me of money laundering, insisted that I proved where the money for the payment I made had come from etc. After getting very very annoyed, I spoke to the manager who was much more reasonable and understood my 'mistake'.

When I say cleared on my account...if you have a £1000 limit and spend £100, your available balance will obviously be £900 however your account statements/transactions will not show who or what the £100 is/was until the next day or two.

That's my experience anyway.

simax

It's simple. You pay the balance in full *AFTER* the statement is produced. Otherwise it looks like you've not used the card.

eg: You buy a £500 TV on your card. Next day you pay it in full. When the statement is produced it will show a balance of £0. You know you've used the card, but as far as the credit reference agencies know and the card companies system work out you've spent nothing.

If you are looking for a better credit rating (and a higher limit later on) you need to wait for the card balance to be posted on the account on statement day.