Credit card paid off

mellb

Hi!

Sorry if this has already been asked, I couldn't find anything on it but feel free to point me where it's been answered if you don't want to have to answer again


Anyway, I've finally paid almost all of my credit card off, got £14.71 to pay. Am I right in saying I should pay the rest off, cancel the direct debit (I had paid it off a few years ago but it still kept taking minimum payments making me go over the limit, I've heard you can get a charge for that?) then keep using it every so often to build up my credit score?


If so, when should I pay it back, the next day, before the next month etc. for it to make a difference to my credit score? If not, what do I dooo?


Thanks for any help!

Gizmo247

No, keep the DD going. Credit card lenders will only charge you what you owe. Non-payment of what they think you owe is considered a default and will be marked as such on your credit file.

The best way to use the card from now on is to ensure your DD is setup to pay the balance in full and use the card sparingly.

redpete

mellb wrote: »

Am I right in saying I should pay the rest off, cancel the direct debit (I had paid it off a few years ago but it still kept taking minimum payments making me go over the limit, I've heard you can get a charge for that?)

As above - they shouldn't take money if the balance is zero. Leave the DD in place to ensure you don't miss a payment when you start using it.

then keep using it every so often to build up my credit score?

I'd use it every month (but only for things that you would be buying anyhow such as groceries) and pay it off in full by the payment date on the monthly statement.

when should I pay it back, the next day, before the next month etc. for it to make a difference to my credit score? If not, what do I dooo?

After the statement date but before the payment due date.

CLAPTON

if you pay the full amount on your statement this month then the DD MAY go out ; it depends upon the card and/or the timing of the payment in relation to the date of the DD; so make sure there is enough in your bank account.

also you will get a small interest charge the following month so make sure you pay that in full too.

otherwise as already said; change the DD to pay in full ; use the card regularly but only for this you buy anyway and make sure there is enough in your bank a/c to meet the DD.

mellb

Right so keep the direct debit but change it to pay in full instead of minimum payments? That makes so much more sense, thanks all!