Weekly Payments on Credit Cards?

CRL46

Hi,

Any advice on paying a credit card off in full once a week? would it have a positive or negative effect on my credit score?

My limit is £500 a month, I initially set a direct debit to take full statement balance but found this wasn't working for me as I was getting close to the limit each month and didn't want to risk going over the limit, therefore I had to restrict my usage of the card.

I have cancelled the direct debit and know just pay off the full balance every Wednesday by debit card as by then all my weekend purchases are no longer pending and payment is normally with the provider by Friday.

the provider will not be reviewing credit limit increase for another 6 months, Ideally my limit would need to be £800-£1000 so I can set up direct debit again.

I use the card for everyday purchases in efforts to revive my credit score.

Any advice will be great.

Thank you.

HappyMJ

You don't need to use the card for everything. Run up the debt to half of the credit limit £250 then use your debit card for further purchases. Wait for the statement to be generated and the payment made on time...not early then use the card again. What will improve your credit score is not using your whole limit and paying it off on time every month....not week. What gets reported is the statement balance, the credit limit and the minimum payment and whether you made the payment or missed it.

[Deleted User]

If you pay off in full each week, you run the risk that your statement will be always be a zero balance, and therefore look as if you're not using the card, therefore not creating any decent credit history.

Nothing wrong with making interim payments to allow you to use the card sufficiently but allow something to come through on the statements.

SnowTiger

CRL46 wrote: »

Hi,

Any advice on paying a credit card off in full once a week? would it have a positive or negative effect on my credit score?

My limit is £500 a month, I initially set a direct debit to take full statement balance but found this wasn't working for me as I was getting close to the limit each month and didn't want to risk going over the limit, therefore I had to restrict my usage of the card.

I have cancelled the direct debit and know just pay off the full balance every Wednesday by debit card as by then all my weekend purchases are no longer pending and payment is normally with the provider by Friday.

the provider will not be reviewing credit limit increase for another 6 months, Ideally my limit would need to be £800-£1000 so I can set up direct debit again.

I use the card for everyday purchases in efforts to revive my credit score.

I explained here why it, generally, may not be a good idea.

However, in your case, you're hoping for a credit limit increase from the card issuer. They will have a full picture of how you handle you account and will be able to see that a higher credit limit would be more appropriate.

System

Only a (manual) underwriter is likely to look at payments in such detail.
Otherwise, it's unlikely to even be taken into consideration.

I would be more worried about going over the limit inadvertently.

Weekly FPs might be more advisable (and less likely to trigger a security check) than weekly debit card payments.

Anthorn

CRL46 wrote: »

Hi,

Any advice on paying a credit card off in full once a week? would it have a positive or negative effect on my credit score?

My limit is £500 a month, I initially set a direct debit to take full statement balance but found this wasn't working for me as I was getting close to the limit each month and didn't want to risk going over the limit, therefore I had to restrict my usage of the card.

I have cancelled the direct debit and know just pay off the full balance every Wednesday by debit card as by then all my weekend purchases are no longer pending and payment is normally with the provider by Friday.

the provider will not be reviewing credit limit increase for another 6 months, Ideally my limit would need to be £800-£1000 so I can set up direct debit again.

I use the card for everyday purchases in efforts to revive my credit score.

Any advice will be great.

Thank you.

If you look at your statement you will see a series of debits and then a credit. In your case if paying it off weekly the credit will be followed by more debits and a credit and so on. I don't see any problem in doing that other than you won't be doing what the lender expects you to do.


Two advantages to paying it off weekly: First you're using your credit limit several times over and secondly proving how much you can pay every month. Probably the quickest way to get a limit increase but unlikely to be sustainable for more limit increases over a longer term.

20aday

OP I used to spend on my credit card and then once the transaction appeared on my account I'd pay it off before the statement was generated.

I can't remember which thread I'd read on here (it was sometime last year) but I kept a small balance on them each month and after a couple of months one of my lenders automatically increased my limit with them.

Anthorn

20aday wrote: »

OP I used to spend on my credit card and then once the transaction appeared on my account I'd pay it off before the statement was generated.

I can't remember which thread I'd read on here (it was sometime last year) but I kept a small balance on them each month and after a couple of months one of my lenders automatically increased my limit with them.

I've been recommending on these forums for ages using the whole credit limit and leaving a small balance. Good to see someone else with the same common-sense approach to engineering limit increases.


Cue the scratched records bleating about paying interest if you don't clear the whole balance lol.

SuperHan

Anthorn wrote: »

I've been recommending on these forums for ages using the whole credit limit and leaving a small balance. Good to see someone else with the same common-sense approach to engineering limit increases.


Cue the scratched records bleating about paying interest if you don't clear the whole balance lol.

And I've been recommending paying down in full for ages. I've had credit limit increases relatively frequently (with the exception of Santander) and never been declined for a requested increase or additional credit cards.

I've also spent less than Anthorn for the privilege, as it hasn't cost me a penny.

Anthorn

SuperHan wrote: »

I've also spent less than Anthorn for the privilege, as it hasn't cost me a penny.

(Text removed by MSE forum Team)

So you know how much I've spent so you must have access to my credit card statements and bank account statements. Best keep quiet about that. You know, fraud squad lmao.