Monthly Payment Question

alipops1986

Hello All,

I think i'm over thinking this but have a question regarding CC and monthly payments.

My OH and I both have a Tesco Credit Card, in separate names. We spend on it every month and then pay it off - now I normally make 3 payments, as and when it gets a little high.

Eg:
£150
£200
£150

Now, aswell as these payments I also have a minimum payment of £10 DD set up. If I still have £40 left on it every now and then, so the balance never really makes it to zero, will this go against my good credit? Or does it not matter because of all the payments i've made?

Would just like this clarify, as I have excellent credit so don't want to mess it up at all!

Alipops x

CLAPTON

well it presumably means you waste quite a bit of your money paying interest

[Deleted User]

Paying off in full tends to position you as a lower credit risk. But carrying a small balance won't dump you in the 'PDL borrower' risk bracket.

But if you can afford to pay it off each month, then do so.

alipops1986

I've never been charged interest on it and i've had it for well over 3 years...

CLAPTON

alipops1986 wrote: »

I've never been charged interest on it and i've had it for well over 3 years...

are you saying you pay the closing balance figure on the monthly statement in full each and every month?

alipops1986

I'll be honest - I don't really pay any attention to that. I just pay it off a couple of times each month. So, by the time they tell me my balance i've probably paid it off and alot of more!

CLAPTON

alipops1986 wrote: »

I'll be honest - I don't really pay any attention to that. I just pay it off a couple of times each month. So, by the time they tell me my balance i've probably paid it off and alot of more!

bizarre

get hold of your credit files and see what they say

if you pay before the statement is produced then your balances may show as zero which looks as if you aren't using the CCs which means they won't improve your credit rating.

tomsco

CLAPTON wrote: »

bizarre

get hold of your credit files and see what they say

if you pay before the statement is produced then your balances may show as zero which looks as if you aren't using the CCs which means they won't improve your credit rating.

Although by the sounds of it, they probably do have a closing balance - although I'm guessing it might be small. Best thing to do is to check if you're statements show a closing balance and if so then you're all peachy.

HappyMJ

You should set the DD to the full balance outstanding rather than paying smaller amounts during the month.

The way you are doing it is risky. If you are £10 short one month you will be charged interest on the whole balance costing much more than £10.