People who pay their credit card after each use

RichardMillington

stevenhp1987 wrote: »

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.

This is exactly what I've done for years now. Never had a problem with it. I do wonder what it looks like to credit card agencies though.

[Deleted User]

Heng_Leng wrote: »

This is utter tosh.

The credit report shows the amount that gets transacted each month - even if the statement balance is in credit or zero.

Why would a third party care if you spend £0 or £5000?

Your utilisation would not be reflected though

Chino

Heng_Leng wrote: »

The credit report shows the amount that gets transacted each month - even if the statement balance is in credit or zero.

This is "utter tosh".

For credit cards, my credit reports show:

• Current balance
• Previous statement balance
• Payment amount

In my experience, the current balance for a month reflects the balance when the issuer generates the statement for that month.

mcpitman

Heng_Leng wrote: »

This is utter tosh.

The credit report shows the amount that gets transacted each month - even if the statement balance is in credit or zero.

Why would a third party care if you spend £0 or £5000?

This is tosh, CRA's report the statement balance not the turnover

Skippy13

It depends. I cleared it this month as we are having new windows and I need to make sure there's enough on the card for me to pay. Once the windows are paid for I'll clear the balance again so I can carry on using the card. Other times I pay when it's due.

enthusiasticsaver

No, I can't see the point of doing this. I can understand for those who have a tight budget they could remove the money from their bank account so it is ready to pay off the bill when it is due but it sounds like a real hassle or would be for us since DH and I both have cards on the account and we use it for everything. I wouldn't care about the credit report as we don't tend to chop and change cards now.

If money was tight I think we would return to using debit cards and just use it for large items for s75 protection.

sarah20161

How do you get commission on paying that, if you don’t mind me asking?

enthusiasticsaver

HappyFrog wrote: »

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.

If you are trying to minimise interest rate charges don't do cash advances on credit cards. Why don't you use your bank account or better still get a bank account in your resident country?

enthusiasticsaver

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.

No it shows you never use it. The best way is to pay it in full when the bill is due preferably by direct debit so it is never missed.

enthusiasticsaver

Deleted_User wrote: »

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

Not to be recommended.

I agree. Why have a credit card if that is the case? Just use a debit card or cash.