Weekly payments for Credit Card?

LauraWxx

Hi,

Even though I am paid monthly i tend to manage my money for petrol, foodshopping and entertainment etc weekly, i take out a set amount of cash for the week - i find this helps me stay on track and not spend too much.

However i am interested in getting a cashback credit card and using that for most of the purchases, especially petrol and food shopping, however my question is relating to the payment of it...can you set up direct debits for the full amount on a weekly basis?

I currently have a credit card that i don't use that often just for a few bits and pieces through the month and then have it set to clear the full balance monthly, but i am nervous around leaving more spending on the card for longer than a week!!

Can anyone tell me if weekly DD's are possible and if not how you stay on track and on budget when using a credit card!!??

Thanks

LauraWxx

ps...current credit card spending is only really to bolster credit file!

[Deleted User]

Do a monthly full payment DD. That way, you will save time and effort, incur no interest and also help to build a good credit history.

If you pay off as soon as you spend (ie weekly), then your credit history will remain as blank as it is now, as it will probably result in an ongoing nil balance being reported.

bigadaj

Paying weekly would be a nightmare, you would probably incur interest a well. Set up a direct debit and then keep a separate spreadsheet of spending, this will allow you to track spending and also check your statement to make surer there are no errors.

LauraWxx

Ok....thank you for your advice both zx81 and bigadaj.
will do that but will also transfer money into a current account to (the same amount spent on cc that week) so at least it is out of my cash account and i dont spend it...can then link the direct debit to that current account I guess.

InsideInsurance

Credit cards work on a monthly billing cycle and so wont be able to do weekly DDs for the full amount.

You can make additional payments by debit card or BACS transfers if you desired though you need to be careful which provider you are with and how it impacts the DD (eg Barclays reduce the DD by the amount paid, Natwest still take the DD as stated on the statement no matter what payments you've made and Santander dont take any DD if any payment, even below minimum payment, have been made)

Due to timing issues I suspect it would work for helping your credit file as with merchants taking a variable amount of time to draw the money and mid term payments taking up to 3 working days to show I doubt your balance would always be 0 when it comes to reporting time.

That said, I do suspect you may run into difficulties due to the fact that credit cards are simply not set up to be run this way and you need to ensure that you additionally obey the rules of settling the statement amount within the stated time frames to avoid interest.

Whilst interest rates are so low it doesnt make the greatest difference but in principle you'd be missing the benefit of the up to 5X days interest free period on all payments and so you'd be better off transferring the money each week into a separate account and having a DD to take the full amount each month from that account.

LauraWxx

"so you'd be better off transferring the money each week into a separate account and having a DD to take the full amount each month from that account."

Thanks for advice...this is what i will do i think!
Didn't realise paying weekly would have so much effect...would rather not risk anything and this looks like the best options....thanks again!

sscott5581

When I am paid I deduct the bills for the month, the money left over I divide by 5 for each week of the month. The last week of the month is normally only a couple of days before my next pay.

I keep my weekly budget amounts in a savings account (1). I spend on my credit card and ensure I spend within my weekly budget. At the end of the week the amount spent is transferred to another savings account (2). I use a spreadsheet to track all spends.

When the credit card statement arrives (I pay by full direct debit) I check the date the direct debit is due, 2 working days before the payment leaves my acount I transfer the amount from savings account(2).

At the end of the month anything leftover in savings account (1) is transferred to my ISA.

Hope this helps.

Anthorn

Most credit card issuers allow payments into the account whenever you want, even several times per month if you want to. Vanquis for example, state this in their credit card information. You will be billed monthly but your statement will list credits you've paid. So if you want to pay weekly, do that but you won't be able to do it by direct debit!

heloid

As above, it's perfectly fine to pay in to your account whenever via faster payments or bank transfer i.e. make a £150 purchase and pay in £150 immediately or a few days later. You just need to make sure you pay in the sum total on your statement by the indicated due date to avoid interest. I do it regularly to avoid going over my credit limit on my 0% purchases card.