Did i pay credit card off in full too EARLY??

j3251

I had received new credit card 2 weeks ago with an interest free offer for 6 months (£3000 limit)

Carried out a balance transfer to a friends credit card to clear balance.

Friend received money owed to him a lot earlier than expected,advised me that the £3000 was paid into my current account on Friday which Ian's showing as available.

Called credit card company,gave them my debit card details to take the £3000 owed which was successfully processed.

I am now wondering if I should have held onto this money and paid my credit card of over a period of 6 months in order to show a good payment pattern?

Does it make any difference?Unlikely to use the card over the next 6 months?

[Deleted User]

Makes little difference (apart from having missed out on some savings interest). But I would use the card for small purchases and clear each month, to show reliable usage.

j3251

O right,out of curiosity how much do you reckon I could have made from the £3000 in interest over 6 months?Would it have been much??

Yeah that's my plan to use for small purchases and pay off in full..

[Deleted User]

Not a huge amount - only a few quid.

j3251

lol ok thanks..

thenudeone

You will probably have paid a 3% (or similar) fee to do the balance transfer, so it's probably just cost you the equivalent of an interest rate of 75% to borrow the money for two weeks.

If you'd opened a Nationwide Flexdirect account paying 5% on balances up to £2500, and put the rest in a 2% savings account, you could have received about £50-£55 in interest, after basic rate tax, which is a it more than "a few quid". Even if you put it all into a basic savings account you'd have earned £20.

The_Boss

Did your friend give you £3k plus the balance transfer fee? Otherwise you would have lost money in helping them...