Would this work to improve credit rating/is it legal

Fredemption

If i were to get 4 or 5 credit cards, spend say £50 on one of them and then do this...

Card #1 - Spend £50
Card #2 - Pay of #1 on 5th of month
Card #3 - Pay off #2 on 10th of month
Card #4 - Pay off #3 on 15th of month
Card #5 - Pay off #4 on 20th of month
Card #1 - Pay off #5 on 25th of month

Set up all as monthly direct debits would this 'A' be legal and 'B' benefit my credit rating as technically i am borrowing and repaying on each card, each month?

:A Seems like a legit good idea to me, but I dont wanna waste my time or get in trouble aha

Fruit_and_Nut_Case

You can't set up a Direct Debit from a Credit Card.

/thread

redux

What's the point?

[Deleted User]

The only way you could do it is with BTs. With a £3 min fee, your £50 wll cost you around £15 in fees plus interest every month. Not that you would get them all processed in time in a month.

Seems an insane idea.

callum9999

I'm not sure why people feel the need to be so blunt/rude about it... Obviously we know it couldn't possibly work, but they didn't.

The fact they had to ask such a question implies they don't fully understand how credit cards work. Would you rather they didn't ask questions on here and got themselves in a mess? (Though of course you'd get to gloat about how superior you are to them if they did...)

CLAPTON

Fredemption wrote: »

If i were to get 4 or 5 credit cards, spend say £50 on one of them and then do this...

Card #1 - Spend £50
Card #2 - Pay of #1 on 5th of month
Card #3 - Pay off #2 on 10th of month
Card #4 - Pay off #3 on 15th of month
Card #5 - Pay off #4 on 20th of month
Card #1 - Pay off #5 on 25th of month

Set up all as monthly direct debits would this 'A' be legal and 'B' benefit my credit rating as technically i am borrowing and repaying on each card, each month?

:A Seems like a legit good idea to me, but I dont wanna waste my time or get in trouble aha

just use a CC (or two) for ordinary spending and pay in full each month. this will show you are a responsible borrower and will enhance your credit worthiness.

stator

Having 5 credit cards would be a bit silly. Best to just have one or two and setup a direct debit for full monthly payment each month and buy a few things that you would have bought anyway.

redux

callum9999 wrote: »

I'm not sure why people feel the need to be so blunt/rude about it... Obviously we know it couldn't possibly work, but they didn't.

The fact they had to ask such a question implies they don't fully understand how credit cards work. Would you rather they didn't ask questions on here and got themselves in a mess? (Though of course you'd get to gloat about how superior you are to them if they did...)

I don't think my question "what's the point" was rude, but I'll expand on why I asked it.

It sounds like a series of transactions designed for or effectively ending up as their own sake, rather than actual spending.

If the aim is to build up gradually towards having a larger amount of credit available in future, then having more than one card is one approach, but this doesn't look ideal and there's only £50 being borrowed, which implies more credit isn't needed yet.

I haven't done any balance transfers for a while, but what I remember is that (apart from the special offer transfers) some cards would charge interest from the day of the transfer even if paid off by the due date in the next statement, while others did count this as interest free. I have no idea if that is still the case.

If there are still some of the latter, it might be a useful way to delay the onset of interest by playing two like this, but more seems bound to lead to confusing oneself. But again for only £50 there doesn't seem a lot of point, as this is likely to be paid off fairly soon.

Fredemption

I hadn't expected to be made to feel like such an idiot for asking a question in a forum designed to be for asking questions , my apologies for not fully understanding credit cards immediately and seeking help. I hope you are all proud of yourselves and I only hope next time you seek advice you are hit with the same kind of arrogance and rudeness.
:T

This isn't aimed at everyone, a couple of you did help and I appreciate that.

CLAPTON

Fredemption wrote: »

I hadn't expected to be made to feel like such an idiot for asking a question in a forum designed to be for asking questions , my apologies for not fully understanding credit cards immediately and seeking help. I hope you are all proud of yourselves and I only hope next time you seek advice you are hit with the same kind of arrogance and rudeness.
:T

I am proud of myself and of those that tried to help you.


You may wish to reread the replies and reconsider your response.

Fredemption

CLAPTON wrote: »

I am proud of myself and of those that tried to help you.


You may wish to reread the replies and reconsider your response.

Hence the edit, you must have just missed it.