Repaying Credit Card with Another..

MrJester

Using the Min Repayments Calculator..

It asks for APR or per month interest rate, looking at my transactions for the CC the last time interest was added it stated INTEREST 2.207%. I'm assuming this is a per month interest %?

edit: yeah think I'm right as I remember the APR is 29.9% and the figures I get at the end are the same. E.g. paying £50 a month off my outstanding £740.48 will take 1 year 7 months and cost £166 in interest.

MrJester

How amusing! After paying £416.30 off my credit card, a week later I receive a letter saying "From April 1st your credit limit for your card will be increased to £2,600".

Is this good or bad for my credit, as I am aware that it may show that I am nowhere near my credit limit, however having unused money can also be a bad thing?

JKSandy

It's good as you will be using a lower amount of available credit however not so good if you max it out. Keep paying it off till it's zero then work on paying your OD off.

MrJester

JKSandy wrote: »

It's good as you will be using a lower amount of available credit however not so good if you max it out. Keep paying it off till it's zero then work on paying your OD off.

Well, great then Yes I will continue to wittle away at the CC. I may have a bursary coming next month to do it a bit more. And I will attempt to extend my overdraft again to £2000 towards the end of my study year to pay it off nice and easy, then it'll just be paying back the overdraft.

MrJester

Does it make sense to pay for as much as possible with my credit card? And then just keep making payments to the card.

I'm not sure how it works but on a CC if you spend £100 and you only pay your minimum for the month lets say its £25 then theres £75 unpaid for and obviously adds interest for this, in this case does this have a negative impact on your credit rating?
Or does it not as you are still making monthly payments and are within your limit?

Does it only show negative if you are close to the max, or over the max?

iAMaLONDONER

JoeJester wrote: »

Does it make sense to pay for as much as possible with my credit card? And then just keep making payments to the card.

I'm not sure how it works but on a CC if you spend £100 and you only pay your minimum for the month lets say its £25 then theres £75 unpaid for and obviously adds interest for this, in this case does this have a negative impact on your credit rating?
Or does it not as you are still making monthly payments and are within your limit?

Does it only show negative if you are close to the max, or over the max?

If you spend £100 and only pay £25 (after the statement is made)
you will pay interest on the whole £100 not £75!

There is a min. payment marker if you only make the minimum payment

zerog

JoeJester wrote: »

Does it make sense to pay for as much as possible with my credit card?

Yes, you should do this, but ONLY if you pay off the balance in full with every statement!

In your case you should not do this until two months AFTER you have paid it off completely. Once you receive a statement with £0 balance on the card and £0 to pay, you will be safe to spend on the card with no interest being charged - as long as from then on you pay the total amount due on each statement.

MrJester

iAMaLONDONER wrote: »

If you spend £100 and only pay £25 (after the statement is made)
you will pay interest on the whole £100 not £75!

There is a min. payment marker if you only make the minimum payment

So it does show on credit.

zerog wrote: »

Yes, you should do this, but ONLY if you pay off the balance in full with every statement!

In your case you should not do this until two months AFTER you have paid it off completely. Once you receive a statement with £0 balance on the card and £0 to pay, you will be safe to spend on the card with no interest being charged - as long as from then on you pay the total amount due on each statement.

Good tips there, thank you very much!

I get a bursary from my university towards the end of the month, so I might be able to actually pay off the rest very soon! Which will make me very happy I work so I earn enough to support myself so the bursary is just bonus mostly other than help with bills for the next two months.

With you saying two months after the final paid off of the CC, are you saying this because it will mean that the CC will update my credit and then my credit rating will get updated as well within that period of time, starting me off with a really good credit again?