In Credit On Credit Card

Fedz

Hi

First I'd like to say MSE is a great site and a wealth of information - appreciated

Many years ago I had several Credit Cards but ended up defaulting on payments ...etc and eventually self bankrupting - obviously blacklisted ...etc.

Now I am in a very good financial position and will be for many, many years (working for local government).

I applied for a Halifax Online account and got one which makes it easier with 24/7 online banking - so that side is good.

I also applied for a CapitalOne Classic Credit Card - this was accepted but had to pay a £200 deposit. I was expecting this. Paid the deposit. Card arrives soon

I'm happy with this outcome as my background is mud.

Now my CapitalOne CC questions:

I'm planning in paying in a few hundred pounds and staying in credit on the credit card. Is this good OR am I better waiting and paying the monthly bill in full? As I prefer the former - does it make a difference on how I'm viewed by them?

I would also like to make payments to my CC via online banking inbetween the statement dates. Is this perfectly fine and not frowned upon by CC companies (CapitalOne)?

Kind regards

newfoundglory

You should not keep your credit card in credit. Most credit card companies insure only their losses and not yours (so not a good idea to leave your account many hundreds of £'s in credit)! Plus, you won't earn any interest on the credit balance (whereas it could be sitting in a nice ISA or high paying account). Its better to just ensure you pay it off in full and on time each month.

Liverpool Victoria is however one credit card company which will pay interest on credit balances on their credit cards.

grumbler

Fedz wrote:

I'm planning in paying in a few hundred pounds and staying in credit on the credit card. Is this good OR am I better waiting and paying the monthly bill in full?

I do not think that this is good. Your credit history is history of you using credit, but not just having credit available.

As I prefer the former ...

Why?

I would also like to make payments to my CC via online banking inbetween the statement dates. Is this perfectly fine and not frowned upon by CC companies (CapitalOne)?

It is O.K., but why? Why not by Direct Debit for full amout? Nothing can be simpler and more reliable.

Fedz

Hi

Many thanks for your replies - appreciated

I understand what you mean grumbler. It would be wiser to have the money in the bank and have the balance paid on CC via DD.

I was thinking opposite - with being badly in debt before I was taking evasive action without it being needed - panic!

The reason I thought as I did was with not having a debit (electron/delta) card I was thinking of using the CC in the same way and having the credit limit viewed as an overdraft but your reasoning is more logical.

Thanks for the pointer in that direction

grumbler

Do not forget that credit limit is usually very low for these cards. Never go over the limit. If you use the card frequently or for big purchases you still probably need to make additional transfers money between regular monthly payments.

mountainofdebt

do as I'm doing?

Any amount I spend on the one card is automatically transferred out of my current account and into my online savings account.

When the bill arrives I know the money is there to pay it off in full. I make an online payment to come out of the savings account in advance and until that moment I am earning interest on the money.

Fedz

Sorry to bring this thread back from the dead!

Since I got my Halifax Web Saver account, I recently applied and was accepted for the Halifax Current Account - previously denied by them - I presume they accept me now as I started having my full salary paid into my new Web Saver account.

So now I have a Halifax Current Account with a generous overdraft (in case).

Thank you mountainofdebt I took your advice and all worked out great

All I ever wanted was a visa debit card to use to buy things with anywhere instead of always using cashpoints and cash! The Cap1 CC will help repair my credit rating

Now I have 2 cards to choose from :rotfl: