Using a Credit card

McClane54

Hi guys and girls

Just a quick question (new to the CC world )

If i was to spend £400 on my credit card , but come the end of the month I only pay £200 off instead of the full amount and then £200 on the following month, What would happen?

Would it have a negative affect on my credit score? would the CC company inform them? also how much would I be charged?

Any advice and help would be most appreciated :j

yangptangkipperbang

When you got your second statement there would be the outstanding balance of £200 showing, plus interest of around £2-50 to £3-50 ish (depending on the card).
There would also be a very small interest charge on the 3rd month, the amount depending on how quickly you paid the second statement off.

Of course, this assumes you spend no more on the card.

A credit card will only adversely affect your credit score if you don't make payments on time.

gglaze

yangptangkipperbang wrote: »

A credit card will only adversely affect your credit score if you don't make payments on time.

Just to expand on this a bit, while in general that's true, if you get into the habit of keeping a high revolving balance - i.e. using more than, say 50% of your available credit, every month, without ever paying it off - then this can also affect your credit score negatively after some time - maybe 12 months of this behavior or more.

So as general advice, if you want to keep some outstanding debt beyond your end of month statement, that's fine - but of course be sure you aren't growing debt beyond your means to pay it off, and try to get it mostly or completely paid off every few months, in order to avoid stacking your credit report with high revolving debt balances.

McClane54

I got a vanquis card, so high intrest, its to build credit score up etc, but im looking to other things that could happen etc if i dont pay it all off in one month would it be ok to pay the next and how it would affect me

thanks for the advice