Does it make you look good paying by DD

stressederic

Hi all,

Just doing a 6 month finance check, and there are things I pay for by direct debit which I could pay off in full.

One is an interest free loan (£45), the other is my car tax (£12)

I will be applying for a mortgage around May time and I was wondering (because I'm sure I've read it somewhere) that paying by DD makes you look good to your bank. - I am with and will be getting my mortgage with Nationwide.

Thanks for all thoughts

[Deleted User]

Not really. It's about ensuring bills are paid on time, not the method.

solentsusie

You will see on here a lot that members recommend setting up direct debits to pay the minimum payment every month for credit accounts. This is essentially to avoid ever missing a payment so that you never end up with a missed payment marker on your file.

A lot of utility companies also give discounts for paying by monthly direct debit rather than receiving a quarterly bill. You can save on land line telephone charges by paying annually up front.

You can save on insurance if you pay it annually as some companies add additional charges for month payment.

Some people also just like to spread payments by monthly direct debit so they don't have to find big chunks of money all at once. Nothing worse than you car insurance, tax and MOT all falling at once for example.

It's all about personal preference and what works for you at the end of the day. As long as you pay bills on time and keep your accounts in good order it doesn't really matter how they are paid.

Although if you are applying for a mortgage soon you might want to get rid of the small loans etc. as they could be taken into consideration for how much you are allowed to borrow.

Good luck.

hardnutman

Bank accounts require DDs to get the benefits. The more DDs you have the more bank accounts with benefits you can get.