People who pay their credit card after each use

Legacy_user

Hiya,


Are there people here who pay off their credit card after each transaction? How do you find this method, and what are your reasons why? Do you prefer it to paying off your statement in full each month?


I recently found out that some people do this , and I'm interested to find out more and the benefits of this

stevenhp1987

I wouldn't recommend doing this.

If you, your statement balance would be £0 each month which would be reported to the credit agencies. It will look like you're not using the card at all.

Just pay it off in full when the statement is generated. Even better if you setup a Direct Debit to pay it off in full.

[Deleted User]

Sweetcake wrote: »

I recently found out that some people do this , and I'm interested to find out more and the benefits of this

The only benefit is if you are very financially nervous and think you will spend more than you can repay.

Not to be recommended.

BoGoF

You would be as well paying by debit card or cash.....unless you needed S75 protection for something.

ariba10

I clear my Credit Card each month with a Direct Debit from my bank.

The bank pays me a small commission on each payment.

(Every little helps)

Katapolt

I was always told this was the best way to have a credit card... how confusing! i was told it builds up a credit report and helps to show that you wont have balance outstanding for long and you're in a position to keep up with payments.

BoGoF

Katapolt wrote: »

I was always told this was the best way to have a credit card... how confusing! i was told it builds up a credit report and helps to show that you wont have balance outstanding for long and you're in a position to keep up with payments.

You were told wrong.

The credit card companies will be reporting a nil balance every month if you do this and it looks like the card is never used.

MallyGirl

Nope. Don't pay anything until the statement is generated otherwise the account looks unused which will not build up any sort of credit history.

thriftylass

BoGoF wrote: »

You would be as well paying by debit card or cash.....unless you needed S75 protection for something.

That's the only reason I use a credit card for, the S75 protection.

takman

If anyone ever feels the need to do this then they would be best opening up a dedicated bank account and pay into it each time you use the card then when the statement is generated pay the card in full from this account.

HappyFrog

I do this with my Halifax Credit Card to minimise interest charges and have done for a few years now. I live overseas and regularly make cash withdrawals on the card (between 5 - 10 per month). I pay online immediately afterwards. The comments above about having a nil balance show on your credit report are incorrect - based on the three reports I have requested over the last year. The report will show a balance. It will also show the number of cash withdrawals made.