Piggybanking method - credit cards

Legacy_user

Heya. Does anyone here have a separate account solely for their credit card payments? So an account they put money in which they use to pay their credit card/s? Do you find this effective as opposed to having the money in your bills account? I’ve heard of some people moving the specific transaction amounts to a separate bank account which they then use to pay their credit card when transactions have cleared or when the bill comes?

[Deleted User]

If it suits you and you can't manage your finances from a single account, the go for it

stevenhp1987

You've posed this twice...?

I don't understand why you would fence off the statement balance into a separate account. If you were that bad at managing money, then just send the money straight to the Credit Card rather than a separate account?

An easier method is to simply setup a DD for full payment and don't overspend.

If you are paying when the transaction has cleared, that is bad. It would look like you are not using the credit card at all as it will end up with a £0 balance each month if you continually pay each transaction off separately. This would look bad to future potential lenders as you are not utilising your current credit availability and therefore have no history of managing and paying off credit. It's a lot of hassle for no gain.

If you are forwarding each transaction amount into a separate account as they happen and then use that to pay off the statement balance... that's an awful lot of micro-management with zero real gain.

jonesMUFCforever

I do it the opposite way - I have several credit cards - one that I use for day to day spending that I get cashback on, another I use for overseas spending because it is commission free, another for say a large transaction that I may want to spread over 2-3 months.
Works well for me.