When should I pay?

jdwx

I recently got a credit card purely just to try and improve my credit rating. I've never used one before & have a question about payments.

I've spent money on the card and it now appears on my balance on online banking.
There is the option to pay the full amount however in order to help improve my credit rating do I need to wait until I've had a statement?

If yes - how long after the statement date do I have to pay? or will this differ with different cards?

Tixy

Yes for credit history purposes wait for the statement.

Varies by card, typically 2 -3 weeks. The due date will be clearly shown on the statement. Alternatively you could always set up a pay in full DD.

grumbler

Tixy wrote: »

Yes for credit history purposes wait for the statement.

I'd say it's not for the history only.
E.g. you spend £100 and pay £100 before the statement.
Then you spend 50p before the statement date and fail to pay 50p between the statement date and the due date.
= Late/missed payment.

It's very important to make at least the minimum payment between the statement date and the due date.

Linda32

Set up a direct debit to pay the whole statement amount owing.

As you have correctly done so, you are keeping a track of how much you have spent. Keep this amount set aside in your bank account.

Then the direct debit will automatically be collected without you having to worry about it.

You will after a period of time see a statement on your online account saying they will collect the balance by DD on a set date. (If you have set one up that is) Even if you have, don't rely on this. Make sure it definitely says on the statement that they will collect the whole amount by DD on a set day. Then if they don't its their problem not yours.

jdwx

Thanks!

Ah I see, I was searching for the payment date on my account details! but as said haven't had a statement yet.

Yes I am going to set up DD that's why I asked about payment dates so I know when to do it for.

Infact can I even choose the date the DD goes out or do they just take it when due? (I'd rather set a specific date after statement date)

Also - Do I get the option to just choose 'always pay full balance by DD' so in future months whatever my balance is they will take it all on set date?

Apologies if these seem like silly questions I just don't want anything to go wrong with this!

Linda32

As the old saying goes, these no such thing as a silly question. It would be silly to let it all go wrong, after all.

jdwx wrote: »

Thanks!

Ah I see, I was searching for the payment date on my account details! but as said haven't had a statement yet.

Thats exactly it.

jdwx wrote: »

Infact can I even choose the date the DD goes out or do they just take it when due? (I'd rather set a specific date after statement date)

Its worth asking, in my case they take it whenever they want too. I just check my balance, just like you have done and set that money aside.

jdwx wrote: »

Also - Do I get the option to just choose 'always pay full balance by DD' so in future months whatever my balance is they will take it all on set date?

Yes, once its set up they will collect the statement balance on the set date.

Tixy

You won't choose the date of the DD, they take it out at a specific date (relative to the statement date/due date).

Yes you would choose the pay full statement option for the DD (all providers will give an option to set up a DD for the full amount).

Be careful of the first statement after you have set up the DD - that is the time people often make a mistake, if the DD isn't set up in time then you will need to pay manually.

jdwx

Great thanks for your quick & helpful replies

going to get the DD set up tomorrow- hopefully they'l get it sorted for my first payment! But il check the statement as you said.