Frequency of payment??

HappyAndrew

Hi, I'm posting this question and realise it's probably going to sound obvious to those who know.

I have just been getting a credit card to help improve my credit history. I have no borrowings apart from a mortgage and this has been the case for nearly 6 years. One ccj on my file at 5 1/2 years old.

My question relates to the frequency of paying off the balance on the credit card. I find it much easier just to buy something on the credit card then clear the full balance within a couple of days, but is that the best way to do it? I.e my balance reading zero at the end of the month? Or is it best to wait until the due date?

Thank you in advance

Andrew

YorkshireBoy

It's best, in terms of building/re-building a credit history, to pay the full statemented balance between the statement date and it's respective payment due date.

HappyAndrew

Thank you.

So doing what I'm doing and paying the balance each week has no negative impact (as long as I pay what I owe)

Great thanks a lot.

CLAPTON

HappyAndrew wrote: »

Thank you.

So doing what I'm doing and paying the balance each week has no negative impact (as long as I pay what I owe)

Great thanks a lot.

No, it's best to wait until the statement arrives and only then make a payment for the full amount showing on the statement (obviously before the due date).

this will show on your credit file : otherwise it will show a zero balance so making it appear that the card is unused.

HappyAndrew

Thanks again. I had a suspicion that I'd get it wrong!

This is the first month of owning a credit card and to be honest I don't really want it, but if it helps rebuild my credit file then I'll do what I have to.

20aday

Hello,

I used to buy things on my credit card and then repay them in full once it'd appeared on my transactions list.

I stopped doing this late last year and by January Lloyds Bank had increased my credit limit.

Even if it's just using it for £30 a month (for example) and then paying the bill in full before the statement due date it'll help your credit history in the long term.

Jsscmm

HappyAndrew wrote: »

Thanks again. I had a suspicion that I'd get it wrong!

This is the first month of owning a credit card and to be honest I don't really want it, but if it helps rebuild my credit file then I'll do what I have to.

It is worthwhile setting up a direct debit on this card so that it always gets paid.

chattychappy

Jsscmm wrote: »

It is worthwhile setting up a direct debit on this card so that it always gets paid.

Provided you remember to have enough money in your account when the DD is taken.

If you can remember that, then you might also be able to remember to pay without the need for a DD - which is what I do.

SnowTiger

chattychappy wrote: »

Provided you remember to have enough money in your account when the DD is taken.

If you can remember that, then you might also be able to remember to pay without the need for a DD - which is what I do.

With many current accounts now paying 3% interest, or more, they're a pretty good place to keep your money; so it's not a case of remembering to have enough money in your account. It's already there.

HappyAndrew

I have no issue paying it off. I just was unsure if it would be seen as a positive to clear it immediately or negative (in the banks eyes)

Thanks for all the replies.

pvt

HappyAndrew wrote: »

I just was unsure if it would be seen as a positive to clear it immediately or negative (in the banks eyes)

But it is not necessarily your bank's eyes that you need to be seen by in order to build your credit history. And other future lenders can only see that you use credit responsibly, and pay it back reliably, if that information is available via the CRAs.