Dont slay me for a serious lack of knowledge....

Lookingforhelp

After burying me head for a good period of time.... I am seeking help via many posts on here.... I thank everyone for their assistance...

Whilst I am working out my options... I have never missed a payments on all three credit cards... I always just pay the minimum payment via direct debit. If I wanted to increase this..only by an additional £1 above the minimum payment for my credit files to note more than the minimum payment has been received per month... can I do this by just paying £1 manually to each creditcard on the same day it usually takes the direct debit or does it not work like that... Please advise if I am way off the mark..

I thank you all for your help.

[Deleted User]

Paying just after the DD has been taken is the safest way, so that the DD doesn't get adjusted downwards, which can happen with some cards.

Eonel

It is not the usual advice on here, but you do not have to pay by direct debit.

Manual payments give you the flexibility of when and how much you pay - depending on the balance, sometimes the whole amount, other times minimum + £1.

It is not too burdensome to remember to make an online payment once a month.

chattychappy

Agree. Manual payments mean that you can make payment(s) as soon as you have the funds available, rather than having them hanging around in a bank account waiting for the DD date. This will reduce your interest bill. The best way is by internet banking from your current account. Because of faster payments, I find that the payment usually goes through the same day, or sometimes next working day. Other methods (eg paying by debit card on the CC's site) can be slower.

Just be sure not to forget and bear in mind that at least the minimum must hit the account between the day after statement date and the "due by" date.

izools

I currently have minimum payment DDs set up on all my credit cards and also have standing orders to send them each £1 on the day after the DDs are taken each month. All taken care of for me after the initial setup

redpete

I would leave the DDs running - once set up they rarely cause problems, if you change to manual payments there is always the chance of forgetting or paying too late or too early.

Pay any extra using online banking on the same day that the DDs are taken from your account.

jo-bo

Im with chattychappy and eonel, pay as soon as you can after the bill has been produced, I like watching the balance come down and rounding dwn the amount to the nearest £5.

Voyager2002

Paying more than the minimum will not affect your credit rating. However, if you miss a payment by accident then that would do real harm to your rating. Overpaying (even by as little as a pound a month) does help to reduce the cost of interest.

agrinnall

izools wrote: »

I currently have minimum payment DDs set up on all my credit cards and also have standing orders to send them each £1 on the day after the DDs are taken each month. All taken care of for me after the initial setup

So what happens if for whatever reason the CC company takes the DD later than the date they have said, and your SO amount arrives first? Does the DD get affected by that, which seems to be the OP's concern? I would imagine not when the dates are so close together, but if it's ever happened to you it might be useful to know.

chattychappy

Voyager2002 wrote: »

Paying more than the minimum will not affect your credit rating.

I've seen minimum payments flagged on my Experian report. I can't see this anything other than negative - albeit perhaps only when taken with other factors.

Lookingforhelp

Voyager2002 wrote: »

Paying more than the minimum will not affect your credit rating. However, if you miss a payment by accident then that would do real harm to your rating. Overpaying (even by as little as a pound a month) does help to reduce the cost of interest.

Surely when creditors look at your credit file, if it highlights 150 payments of the minimum over 3 years or 150 payments that are not the minimum, this must give you a more favourable outcome than the minimum ??