Credit Card Full Payment?

TMinside

Hi all,

So I've just got myself a credit card with Vanquis. I was wondering could I make a purchase then make a full payment that same day/day after to still increase my limit. Or should I just leave it to be taken via Direct Debit.

Thanks.

PeacefulWaters

Transact.
Get Statement.
Clear balance in full.

Don't clear the balance before the statement.

[Deleted User]

Or start posts with 'So'...

20aday

I used to make purchases on my credit card(s) and clear the transactions before the statement was due.

Looked like I was never using the card(s) so never saw any limit increases.

Ebe_Scrooge

To the OP, what is your reason for using the card ? If you want to improve your credit history, then you need to wait for the statement to arrive, then pay it off in full. Otherwise, as 20aday says, what gets reported to the CRAs is that you're not using the card, so you're not doing yourself any favours in that respect.

It sounds like you've set up a DD to clear the full balance every month ? This is absolutely the right thing to do - you get all the benefits of using a card, no interest to pay, and it'll reflect positively on your credit file.

derps

Also be careful that loading up a credit card with overpayments to allow you to buy things that cost more than your credit limit is usually a breach of the terms and conditions. Not sure if that's part of what you meant so please ignore me if you never intended to do that!

chattychappy

Ebe_Scrooge wrote: »

It sounds like you've set up a DD to clear the full balance every month ? This is absolutely the right thing to do - you get all the benefits of using a card, no interest to pay, and it'll reflect positively on your credit file.

As far as I know, whether or not you pay by DD is not shown on your credit file. Paying in full manually will be just as effective from the point of view of your credit file.

Paully232000

chattychappy wrote: »

As far as I know, whether or not you pay by DD is not shown on your credit file. Paying in full manually will be just as effective from the point of view of your credit file.

That is right, but when you pay the full amount by whatever means is the important point from the point of view of how it looks on your credit report.

Ebe_Scrooge

chattychappy wrote: »

As far as I know, whether or not you pay by DD is not shown on your credit file. Paying in full manually will be just as effective from the point of view of your credit file.

You're right - how you pay is not important. What I was meaning is that by using a DD, you remove any risk of forgetting to pay, or not being able to pay if you happen to be abroad on holiday etc.

redux

A possible reason to make a payment early is if you are approaching the credit limit

For instance credit limit £1200, balance £1000, anticipated upcoming spending £400, then it's worth making an early payment of more than £200, but not necessarily all the £1200 immediately, so as to able to use the card for that purchase.

TMinside

Yes I've currently set it up for the direct debit to take the full payment every time. I asked the question as I just wanted to pay it off as soon as I used the card for anything. But either works fine for me as long as it helps to get my CR up.