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Increasing Credit Rating Via CC
Comments
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thebritishbloke wrote: »Your argument is that the DD would fail because you don't have enough money in the account. This would still be a problem if you pay it off early manually.
If you have money in the account, and you have the direct debit set up, if there is an error at the bank, you will not be left at fault. The direct debit guarantee is there to protect you from money being taken early, or duplicate transactions etc.
You've already set up the direct debit, meaning you've agreed for the lender to take the money out of your bank account on the agreed date. Your obligation is fulfilled, now all you need to do is make sure there's money in the account.
I can hear the lender, "Nope nothing to do with me. You missed a payment and you owe me £12 for that and that sent you over limit so you owe me another £12. Oh and I'm counting that failed DD as a returned payment so that's another £12. hey good luck, I want my money and thanks for the profit". We can file a complaint but that takes time and yet more time to get the default removed from our credit history.
We can avoid all that just by considering what might happen and providing for it0 -
I can hear the lender, "Nope nothing to do with me. You missed a payment and you owe me £12 for that and that sent you over limit so you owe me another £12. Oh and I'm counting that failed DD as a returned payment so that's another £12. hey good luck, I want my money and thanks for the profit". We can file a complaint but that takes time and yet more time to get the default removed from our credit history.
We can avoid all that just by considering what might happen and providing for it
I paid my statement off early via debit card once, a week later they took the payment again via my direct debit. I got refunded this along with a £20 goodwill gesture. My bank charged me for going over-limit, they saw the direct debit messed up and refunded me the charge.
Took one 5 minute phone call to the bank, and 5 minutes to my credit card company.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
I can hear the lender, "Nope nothing to do with me. You missed a payment and you owe me £12 for that and that sent you over limit so you owe me another £12. Oh and I'm counting that failed DD as a returned payment so that's another £12. hey good luck, I want my money and thanks for the profit". We can file a complaint but that takes time and yet more time to get the default removed from our credit history.
We can avoid all that just by considering what might happen and providing for it
Have you ever actually experienced the situation you describe?
Earlier this year i made a balance transfer to my nationwide card, something went wrong at their end and they did not take the payment that was due (via DD) about 4 days later they phoned me up to discuss the missed payment, i explained that a DD was in place, they confirmed this and accepted that the error was theirs. I made a manual payment then over the phone and nothing more was required
Setting up a DD and manual payments seems to cause more issues than it will ever solve - you need to keep track of those companies that still take the payment via DD even if you make a manual payment, (meaning you would need twice as much in your account) make sure that companies that do adjust your DD to take into account manual payments take at least 1 payment by DD every year to prevent the DD expiring. You would need to ensure your payment is the full statemented balance if you want to avoid interest - and be prepared for your card to be blocked if you do go into credit because the DD still came out in full
Set a DD for whatever amount you want and leave it alone, it works fine0 -
- Is the above helping me build my credit rating or it's no use since i'm paying it off in full always?
What's your objective?
Credit history is retained for a 6 year period. So in the context of your age. Over time the credit card usage, if you pay your account on time every month, will demonstrate reliability. This will tick a single box. Lenders have a list of boxes to be ticked. So don't get caught up in the whole credit scoring nonsense. As really boils done to good personal financial management and common sense.0 -
and miss out on my 4% cash back at the supermarkets and petrol? I don't think so matey0
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Have you ever actually experienced the situation you describe?
Damn right I have. I only ever comment on my own experience. In the last 6 years I've paid off over £35K in bad debts. And no it wasn't my fault, c.f 2007/8.Earlier this year i made a balance transfer to my nationwide card, something went wrong at their end and they did not take the payment that was due (via DD) about 4 days later they phoned me up to discuss the missed payment, i explained that a DD was in place, they confirmed this and accepted that the error was theirs. I made a manual payment then over the phone and nothing more was required
Not all lenders will do that. For some lenders particularly sub-prime lenders dealing with relatively small balances, it's a matter of arbitrary and automatic. I will say however that I get better customer service from Aqua than I would have expected.Setting up a DD and manual payments seems to cause more issues than it will ever solve - you need to keep track of those companies that still take the payment via DD even if you make a manual payment, (meaning you would need twice as much in your account) make sure that companies that do adjust your DD to take into account manual payments take at least 1 payment by DD every year to prevent the DD expiring. You would need to ensure your payment is the full statemented balance if you want to avoid interest - and be prepared for your card to be blocked if you do go into credit because the DD still came out in full
Set a DD for whatever amount you want and leave it alone, it works fine
I agree. That's why we should consider possible errors.0 -
Seriously? All lenders will do that. They're obliged to.Damn right I have. I only ever comment on my own experience. In the last 6 years I've paid off over £35K in bad debts. And no it wasn't my fault, c.f 2007/8.
Not all lenders will do that. For some lenders particularly sub-prime lenders dealing with relatively small balances, it's a matter of arbitrary and automatic. I will say however that I get better customer service from Aqua than I would have expected.
I agree. That's why we should consider possible errors.
Are you just a troll that's playing the long game here?Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
Most credit card providers take DD payment about 5 days in advance, anyway. If you don't see it the day before the payment is due, just make it manually.0
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Stephen_C. wrote: »Most credit card providers take DD payment about 5 days in advance, anyway. If you don't see it the day before the payment is due, just make it manually.
Most might do but Vanquis don't: They take it on the day it's due in my own experience anyway.0 -
thebritishbloke wrote: »Are you just a troll that's playing the long game here?
Curious isn't it. I'm thinking you're a troll mainly because you post to disagree with me in almost every thread I post in.0
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