Piggybanking method - credit cards

Legacy_user

Heya. Does anyone have a separate account designated solely for their credit card payments? So an account they put money in to pay their credit cards? I’ve heard of some ppl moving the specific amount they’ve spent on their credit card when they’ve used it and then paying it when pending transactions have cleared or bill comes. Just wondered if ppl here have a specific account for this?

Fingerbobs

Sweetcake wrote: »

Heya. Does anyone have a separate account designated solely for their credit card payments? So an account they put money in to pay their credit cards? I’ve heard of some ppl moving the specific amount they’ve spent on their credit card when they’ve used it and then paying it when pending transactions have cleared or bill comes. Just wondered if ppl here have a specific account for this?

I'm not sure how it would be useful to do this. In my case, my credit card bill varies wildly from month to month, so having a separate current account to make payments from would just mean another account to monitor and make sure it had enough in it each month to cover that month's card statement.

Virtually all of my spending is done on credit cards; I only use a different payment method when I'm forced to. It makes sense to have the payments taken by direct debit from my main current account.

18cc

I have a Barclays current account that is used solely for paying off my credit cards the main reason is so that I can use the direct debits to get the monthly reward payments from Barclays

keef-WhatStandards

Sort of. :-

Two Tesco credit cards (originally 0% on purchases). Money paid into two Tesco current accounts paying 3% interest.

First credit card 0% offer expired so now just use it once a month so I can DD from second current account which requires DDs to get the interest.

Dobbibill

I do something similar but not with every transaction - I transfer my CC total to an account which earns interest. Whilst waiting for the full DD to take the funds for the CC, my payment amounts earn interest.

The DDs then satisfy the criteria for interest - win, win!

System

hey hey! Fellow biggybanker. Can you explain more about how that works please? Like with examples? So the account that gives interest is it a current account?

Dobbibill

yes, it's a current account.

I have 2x DDs set up on it for CCs.

On pay day I transfer the amount to pay off in full.

This will come from the relevant piggybank for the spending (eg a house spend on one of the CCs will come from the house account. Likewise a fuel payment will come from my pay within the budget of monthly fuel)

Funds sit there earning interest for x amount of days until the DD is collected.
This method gets me interest on my current account plus cashback on my CC (well at the moment it does but that's coming to a stop soon )
This also gives me access to the RS linked to said current account

System

18cc wrote: »

I have a Barclays current account that is used solely for paying off my credit cards the main reason is so that I can use the direct debits to get the monthly reward payments from Barclays

Okay great. Can you tell me more about how you fund this account please? Or do you simply move the transaction amount of purchases into this account and have the direct debit to pay it in full?

Dobbibill

Sweetcake wrote: »

Okay great. Can you tell me more about how you fund this account please? Or do you simply move the transaction amount of purchases into this account and have the direct debit to pay it in full?

I just transfer the full statement amount into the account.

You can do it transaction by transaction if you prefer - that's personal preference.