Pay credit card balance after the statement received or every week or after significant expenditure?

[Deleted User]

jadex wrote: »

just curious: what is the point of having credit card then when debit card would work for you just the same way?


side point: good for you that you got credit card whilst on IVA

Section 75 protection
Cashback/reward points
Many other reasons

Though it should be paid off after the statement is issued.

[Deleted User]

David2018 wrote: »

Do you think they will tell you this? They don't even tell you why the credit scores have been reduced.

And why would someone here know/tell?
They would be under an NDA to not disclose any information if they worked for a CRA.

The "scores" reduce when it gets cold - they are made up and are to be ignored.

Because it is very important in almost everybody's life (if, at some point, you are going to buy a house and take a morgage) and you need to understand how it works, in first place, in order to do it right.

The way the CRA's operate has been like this for many, many years, and people get accepted for mortgages, credit cards, loans etc. without delving (or trying to) into the ins and outs of it all.

And the ways that have been discussed on this board in many, many, MANY posts is the way to do it, including this thread

Craig1981

jadex wrote: »

just curious: what is the point of having credit card then when debit card would work for you just the same way?


side point: good for you that you got credit card whilst on IVA

to start rebuilding credit
section 75
rewards
emergencies

better to have the credit than no credit IMO

JimmyTheWig

David2018 wrote: »

Payment amount means that it was a debt that you paid, otherwise why would you make a payment? The difference is only that in first case a person paid the debt few days after the transaction and in second case the person waited to pay for 25 days. So why not paying for 25 days is psoitive? Your answer does not make it clarer unfortunately.

When paying before the statement date you are, in effect, using the credit card as a debit card.
When waiting until the statement date you are showing that you have the willpower to run up a debt, ensure that debt stays within your means, and pay it off. I think this is why it is seen as a good thing.

sparkey1

There is no harm done to your credit record, by paying early.

The balance you see on your credit report is normally the balance taken on the day your credit card statement is produced.

I pay my credit card weekly. This is why.

1 Utilisation levels are kept low.
2 Some providers calculate interest on using the average balance method. (Not that I pay it, but if I did)
3 Its never late.
4 Savings rates are low.
5 Sometimes the limits are to low for the transactions I am doing that month.
6 It makes no difference to the cashback I receive if I pay early.

For most people it wont make a difference.

David2018

JimmyTheWig wrote: »

When waiting until the statement date you are showing that you have the willpower to run up a debt

According to an English dictionary a willpower is a "strong determination that allows you to do something difficult (such as to lose weight or quit smoking)". I don't think that waiting until the statement is issued and then paying is much more difficult (or show you are more able to control) than paying weekly. There should be a better reason, that the lenders know and we don't.

David2018

Here is more reason why I am suspicious about high level of balance: when you apply for a loan I think it asks what the balance on your credit accounts is. If the balance on your credit card account is high, e.g. £1,500, then the amount the lender is ready to lend is reduced (I think). When I applied for the second credit card the bank representative asked me how much the balance on my first credit card account was. It was high. The credit limit on second credit card I got was low. The rep. told me it is because the high balance on my first credit card account.

[Deleted User]

The limit was low due to the available credit you can gain access to.

Not the balance on another card.

sonuenjoys

Statement balance should be paid off in full each month to maintain a good credit score. Paying off unbilled purchases will also classify you as a full payer.

[Deleted User]

Why maintain a fictitious number?