Should I pay off a 0% CC in full every month?

alexfoxgill

I've just signed up for a 0% credit card. I've just about maxed it out but have a healthy amount of cash in my current and savings accounts, accumulating interest. My girlfriend reckons that I should pay off the full credit card balance each month so that it won't affect my credit rating, is she right?

Westie983

Not if its 0%, as your credit file will have the account opened, the limit and if it has a promotional balance.

Just make sure you pay the minimum payment each month so you dont lose the 0% and save the rest of the money elsewhere earning interest, then when the 0% is due to expire, make the payment to pay it all off (whatever is remaining), just diarise the date it ends so you don't get stuffed paying interest on whats left.

I would also maybe pay £1 more then the minimum payment so it doesn't look like you are only paying minimum as it may look like you are struggling, (though not sure how valid this is but what a extra £1)

Your girlfriend would be right if your CC was attracting interest, in that case yes pay it in full to avoid interest and to keep your credit file healthy as it shows you paying it all off each month.

Ben8282

Your OP lacks essential information needed to answer this question.
If you have already done a 0% BT and presumably paid a fee for it then there would be very little point in repaying it straight away as this would defeat the objective.
However, if the new card is a credit card that you intend to use for purchases which just happens to have a 0% offer for purchases, then you have the choice either to pay it normally and continue using it for purchases (you say it is almost maxed out) or just make the minimum payment for the duration of the 0% purchase offer and make all future purchases during the period by other means (cash, debit card or other credit cards).
Any ongoing balance will negatively effect your credit rating to one extent or another. It all really depends on your overall financial situation and what further applications for credit you may intend to make in the near future.

alexfoxgill

Thanks to both - Ben, it's a new Halifax card with 18 months 0% (no balance transferred).

I have been paying £300 into a 6% regular saver which will mature in August, so I got the card in order to pay for things like holidays while those savings are tied up. I can pay the balance off every month with my current account but I'd then have to put more on the CC until my savings are available.

It sounds like it won't make a huge difference either way, as long as I pay more than the minimum each month and pay the whole thing off before the interest rate kicks in. Thanks guys!