When to make payment?

edited 30 November -1 at 1:00AM in Credit Cards
7 replies 766 views
StarGazer85StarGazer85 Forumite
12 Posts
edited 30 November -1 at 1:00AM in Credit Cards
Hi there
On my online HSBC banking it says the CC bill due date is 3rd April. What happens if I make a purchase on the card on say 31st March - Would I only have a really short time to pay it off before it accumulates interest or the minimum payment direct debit makes the minimum payment?
I am trying to make a few purchases each month to pay off in full in order to improve my credit rating but don't want to be caught out. Hope this makes sense. Thank you.

Replies

  • Robin9Robin9 Forumite
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    Don't pay in advance - what for the invoice.

    Even better set up a DD with your card provider to take full payment by the due date.
    Never pay on an estimated bill
  • edited 17 March 2018 at 2:46PM
    moleratmolerat Forumite
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    edited 17 March 2018 at 2:46PM
    Please confirm what you mean by "due date" as making a purchase on 31 March will have no effect on the payment due. Do you understand what happens if you have a DD set up for minimum payment and you make manual payments ?

    You need to pay off a statement in full by the due date. Anything you purchase after that statement is produced will not incur interest unless you do not pay the statement in full.
  • molerat wrote: »
    Please confirm what you mean by "due date". Do you understand what happens if you have a DD set up for minimum payment and you make manual payments ?

    You need to pay off a statement in full by the due date. Anything you purchase after that statement is produced will not incur interest unless you do not pay the statement in full.

    No I don't really understand it - can you tell :rotfl:
    Basically would it be better if I just ask the bank to set up a DD to pay off the full amount each time it's due and then I don't have to worry about it?
  • moleratmolerat Forumite
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    No I don't really understand it - can you tell :rotfl:
    Basically would it be better if I just ask the bank to set up a DD to pay off the full amount each time it's due and then I don't have to worry about it?
    Yes ! DD set for payment in full, just make sure you don't exceed your limit.
  • [Deleted User][Deleted User] Forumite
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    MoneySaving Newbie
    You're improving your credit history and managability - not rating (or score).

    It will work like this as an example:

    You spend £500 on the card.
    You'll get a statement on the 1st of March, with a payment due date of the 25th of March, with a £500 statement balance.
    Any purchases made between the 1st of March and 1st of April (the next statement date) will go onto April's statement - example; you spend £300.
    You make the payment on the 25th of March for £500, however there is still £300 remaining as this will go onto April's statement for payment.
    And the cycle continues
  • Hi there
    On my online HSBC banking it says the CC bill due date is 3rd April. What happens if I make a purchase on the card on say 31st March - Would I only have a really short time to pay it off before it accumulates interest or the minimum payment direct debit makes the minimum payment?
    I am trying to make a few purchases each month to pay off in full in order to improve my credit rating but don't want to be caught out. Hope this makes sense. Thank you.

    Hi StarGazer85,

    I just want to provide some clarity in general and maybe the answers your question and I'll use an example so hopefully it's simple!

    Example

    If your statement gets produced on lets say the 1st January and has a due date by the 31st January (for example) you would have to pay that balance, in full, to not get any interest on that balance on that particular statement. *Please note there are other things that could change that like 0% promotions but I'm assuming you're not on that.

    Now, what happens when you make a purchase on your Credit Card anytime in-between these dates: 1st January-31st January? Well, to put it simple they would go onto your February statement i.e. 1st February due to be paid by the end of February.

    Now, there is no harm in paying the card off in advance prior to the due date, however most people as previously mentioned prefer a Direct Debit the main 4 options are; minimum, fixed, full and percentage. If you're looking to build your "score" up I would as mentioned look at paying it of in full on the Direct Debit but it's whatever your finances can support!

    Any questions, let me know.
    Kind regards
    Anonymous
    :j
  • SuperscroogeSuperscrooge Forumite
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    Basically would it be better if I just ask the bank to set up a DD to pay off the full amount each time it's due and then I don't have to worry about it?

    Yes, that is the correct solution!
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