Credit Rating Improvement - Should I pay off credit card straight away?

Elsterap

I will set up a direct debit to pay off my credit card in full, but I do not know when to do it. I am always in a positive balance on my debit card - around £500 by the the end of the month.

Halifax said they will give me 59 days interest free. I want to improve my credit rating to get a mortgage in around 5 years time.

What shall I do? (These may not all be possible so let me know if it is not!)

a) Set up a direct debit to pay off straight away.
b) Set up a direct debit to pay after 32 days from the spend.
c) Set up a direct debit to pay at the end of the calendar month.
d) Set up a direct debit to pay at the end of the next calendar month.

All options use a direct debit because I am not organised enough to do it manually every month/whenever!


PS this is not the place to be discussing the usefulness of credit ratings - even if they are only accurate 0.1% of the time, I want to improve my chances by that 0.1%!

MallyGirl

Setup your account to take the statement amount in full by DD. the credit card will pull the required amount at the right time - no need for you to mess about.

CLAPTON

Elsterap wrote: »

I will set up a direct debit to pay off my credit card in full, but I do not know when to do it. I am always in a positive balance on my debit card - around £500 by the the end of the month.

Halifax said they will give me 59 days interest free. I want to improve my credit rating to get a mortgage in around 5 years time.

What shall I do? (These may not all be possible so let me know if it is not!)

a) Set up a direct debit to pay off straight away.
b) Set up a direct debit to pay after 32 days from the spend.
c) Set up a direct debit to pay at the end of the calendar month.
d) Set up a direct debit to pay at the end of the next calendar month.

All options use a direct debit because I am not organised enough to do it manually every month/whenever!


PS this is not the place to be discussing the usefulness of credit ratings - even if they are only accurate 0.1% of the time, I want to improve my chances by that 0.1%!

Important to understand the financial systems

debit cards don't have either positive or negative balances and you don't pay them off
they are simply mechanisms to transfer money from your current account


Direct debits are set up by your CC company although authorised by you

most only allow a few options which don't include all of the above


best just to set up a DD for the full amount and authorise your CC company to do that.

[Deleted User]

Elsterap wrote: »

credit ratings - even if they are only accurate 0.1% of the time

I don't think they're quite as accurate as that.