question about balance

Simba-ali34

hello,

sorry i am new to credit cards and im havng trouble understanding my statement, so my limit is £1000. my current balance on the card is £120. when i receive my next statement saying i owe £120 what happens to money i spend after that? because i hear people say always say pay off the full balance each month, so if my statement says £120 but i have spend another £40 since that statement was issued would i pay £160 that month or pay £120 leaving £40 for the next month?

grumbler

Simba-ali34 wrote: »

hello,

sorry i am new to credit cards and im havng trouble understanding my statement, so my limit is £1000. my current balance on the card is £120. when i receive my next statement saying i owe £120 what happens to money i spend after that?

It gets added to the balance.

because i hear people say always say pay off the full balance each month, so if my statement says £120 but i have spend another £40 since that statement was issued would i pay £160 that month or pay £120 leaving £40 for the next month?

£120. It's the statement balance that has to be paid in full, not the current balance.

Simba-ali34

So it's the statement balance that needs to be paid in full? Not the overall balance? The rest carries over? Can you pay the whole card balance off if it's more than the statement balance

grumbler

grumbler wrote: »

It's the statement balance that has to be paid in full, not the current balance.

Simba-ali34 wrote: »

So it's the statement balance that needs to be paid in full? Not the overall balance?

The rest carries over?

The payment gets credited to the account thus reducing the current balance.

Can you pay the whole card balance off if it's more than the statement balance

Yes, you can, but why? If you don't want free credit just use a debit card instead of a CC.

darkidoe

grumbler wrote: »

Yes, you can, but why? If you don't want free credit just use a debit card instead of a CC.

Section 75 for bigger purchases? Building credit history? Points! Cashback!

20aday

Definitely pay the statement balance (by the due date as printed on your statement) and any additional expenditure would need payment from the next statement.

As I've found out myself by paying for the card in full (statement balance and other expenditure) it shows up as a positive on my credit history but the downside is it looks like I'm not using my card therefore showing any potential, future lenders it's an empty, unused one.

rolls99

20aday wrote: »

Definitely pay the statement balance (by the due date as printed on your statement) and any additional expenditure would need payment from the next statement.

As I've found out myself by paying for the card in full (statement balance and other expenditure) it shows up as a positive on my credit history but the downside is it looks like I'm not using my card therefore showing any potential, future lenders it's an empty, unused one.

Concur too. And remember that you shouldn't bust your limit whatever the statement says