should i pay off credit card before bill arrives

nmjams

I have a credit card that i use for everyday things, then pay it off when the bill arrives to try build my credit rating up as i was refused a credit card due to late payments last year.

I have a standing order to pay the minimum payment each month, i don't want to set it up to pay the full balance in case the account is short for whatever reason.

I paid Council tax, Water rates etc last week with the card, i logged into online banking today and all of them are showing, could i pay off the balance now to make things easier for myself or should i wait for the bill?

Would it be better for my credit rating to wait or does it not matter?
Cheers, Nmjams

YorkshireBoy

Just in case they report the balance to the CRAs as of your statement date, you'd be better to wait until the statement has been produced.

bigadaj

You should have set up a direct debit for the minimum amount not a standing order. Some card payment dates vary from month to month so you could end up with a missed payment.

dalesrider

nmjams wrote: »

I paid Council tax, Water rates etc last week with the card, i logged into online banking today and all of them are showing, could i pay off the balance now to make things easier for myself or should i wait for the bill?

Would it be better for my credit rating to wait or does it not matter?
Cheers, Nmjams

When you pay makes no diffrence to you credit reporting....

Just make sure you do not pay too early or you end up making a payment onto last months statement.

If you are paying in full each month. Then to make best use of your money.
Put the amount due into a saving acc for the period and make the payment, say 5 days before the due date.
OK its only pence a month interest, but every penny helps

Pointless having a fully paid credit card and NOT using the interest FREE period to the best.

simax

If you started with a zero balance, spent £150 then a few days repaid the £150 to bring your card down to a zero balance, when the statement is produced it would show £0 owing, which is what would report to the CRA's.

In other words, to other lenders it would show you are not using the card. You are best waiting for the statement to produce.

StuC75

This is incorrect.

Experian record the Balance, Payment Amount, Previous Statement Balance, Cash Advance Count, Cash Advance Amount, Payment Code & Promotional Rate..

So this does show if there is a volume of activity going through the account, if just paying Min pmt or more, or if theres are Balance Transfer rate on there...

simax wrote: »

If you started with a zero balance, spent £150 then a few days repaid the £150 to bring your card down to a zero balance, when the statement is produced it would show £0 owing, which is what would report to the CRA's.

In other words, to other lenders it would show you are not using the card. You are best waiting for the statement to produce.

Robisere

Do you bank online?

If so. this is what we do:
we pay all utility and household bills via DD. You can usually choose which day of the month to make the payment. we pay rent (Sheltered Housing, don't trust the landlord) by Standing Order. We watch energy and water invoices online and read meters every month, entering them onto the Account on the website. That way, no big increase can catch us out.

We have the option with our bank to make Credit Card payments at a future date, which we usually make as close to the Due Date as possible, taking care to miss out weekends and Bank Holidays and make the payment before they occur. If we make a large CCard purchase, we try to make as large a payment as we can afford, in order to reduce the time owed and the interest. If there is only a small amount owing, we pay it all off just before the Due Date, as above.

The reason for our way of working, is that I once had a very good, responsible, well-paid job and became disabled in my late fifties. Lost the job, almost lost the house, eventually sold it at a loss. Began another career, disability worsened, lost that job through ill health, retired. Our lifestyle fell like a stone and we learned a hard lesson. My wife is also disabled and we now live on a reduced pension (NI payments not enough) and we have to check every outgoing against the incomings.

Once you learn a lesson like that, it brings home to you the fact that you can have a very good life without all the "goodies" that everyone thinks they just have to have. Payment discipline is the answer: put necessities firs - home, utilities, food, clothing. Pay for them by DD if possible, then look at what is left and work out what you can afford.

simax

StuC75 wrote: »

This is incorrect.

Experian record the Balance, Payment Amount, Previous Statement Balance, Cash Advance Count, Cash Advance Amount, Payment Code & Promotional Rate..

So this does show if there is a volume of activity going through the account, if just paying Min pmt or more, or if theres are Balance Transfer rate on there...

Actually, you are also partially incorrect.

Not all card providers send this info to the CRA's.

My Nationwide card does, however my Creation cards do not. Those just show limit, balance and payment history. Nothing about min payments/cash etc.