People who pay their credit card after each use

edited 30 November -1 at 1:00AM in Credit Cards
34 replies 4.8K views
Legacy_userLegacy_user Forumite
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MoneySaving Newbie
edited 30 November -1 at 1:00AM in Credit Cards
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
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Replies

  • stevenhp1987stevenhp1987 Forumite
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    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.
  • zx81zx81 Forumite
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    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.
  • BoGoFBoGoF Forumite
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    You would be as well paying by debit card or cash.....unless you needed S75 protection for something.
  • ariba10ariba10 Forumite
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    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)
    I used to be indecisive but now I am not sure.
  • KatapoltKatapolt Forumite
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    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.
  • BoGoFBoGoF Forumite
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    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.
  • MallyGirlMallyGirl Forumite, Board Guide
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    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.
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to [email protected]
    Any views are mine and not the official line of MoneySavingExpert.com.
  • thriftylassthriftylass Forumite
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    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.
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  • takmantakman
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    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.
  • HappyFrogHappyFrog Forumite
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    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.
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