How to pay off IN FULL?!

guille

Hello all,

Bit of a stupid question potentially...

I’ve paid off my credit card and have now set up a direct debit to pay my credit card off in full each month. My question is this:

Say I’m billed on the 10th of January and will have to pay on 10th February. Will it take anything else off that I spent after the 10th of January or will that be on the next bill?

And which is better? Allow it to take the direct debit for the full
Amount spent before the 10th January? Or also make an additional payment for the spenditure after the 10th?

I’m just keen to avoid interest and build my score.

Hope this makes sense!

Thanks in advance.

[Deleted User]

Anything spent after the statement date of 10th January will appear on the following months statement for payment.

Just let the DD do its job - there’s no need to make additional payments.

Also ignore your credit score - there’s little point attempting to build a ficticious number

Nebulous2

If you're billed on the 10th of January its more likely to be the 31st of January for the DD to be taken. You need to check your statement to make sure the DD has been set up - sometimes they can miss the first statement if it is printed close to the time you setup the DD.

The statement should say something like:- The full amount will be taken by direct debit on or shortly after 31st January.

If it says that you should be absolutely fine. If it doesn't you will still need to make a manual payment in the first month. Pay the statement amount - expenditure after the staement can be dealt with next month - as long as you aren't close to your limit.

guille

Thank you for the information!

Currently saving for a mortgage and I would argue that the credit score is, however we may feel about it, important! This is why I want to make sure I’m doing things correctly. Thanks again!

[Deleted User]

It’s not important at all.

Lenders do not see or care about it.

macman

What matters is your credit history. Only you can see the made-up score.
Late payments, defaults, CCJ' s are what matter (or indeed a lack of history)

PixelPound

purchases after the statement date will be on the following statement, Setting a DD for the full amount means you avoid interest and the payment should be taken, so long as sufficient funds are in the account. As stated if you've just set up the DD a manual payment may be needed for the first statement (even if just the minimum to ensure that is met)

Darkslider

!!! wrote: »

It’s not important at all.

Lenders do not see or care about it.

I don't understand why this attitude is so prevalent on this forum. It's not a difficult concept to grasp, Joe Public probably can't (at first) discern from the wealth of information presented when they view their credit history whether they would be viewed as good, mediocre or poor by a lender. So to assist with this, the CRAs have (I assume) developed an algorithm that looks at all your available credit history, the good and the bad, and generates a 'score' which gives the individual an approximate idea of how a lender might view them when considering them for credit.

Yes, this score won't always accurately represent the conclusion a lender might come to, but as a rough indicator it's a useful tool and certainly shouldn't be ignored. To say it 'isn't important at all' is misleading. It would be more helpful to inform newbies that their score isn't the be all and end all, and should be monitored in conjunction with the data available in their history to gain a more complete picture of your finances.

To answer the original question, simply clearing the whole balance each month will be viewed favourably by lenders as it shows good money management skills, which will improve your 'score' whether you pay attention to it or not.

System

Darkslider wrote: »

I don't understand why this attitude is so prevalent on this forum. It's not a difficult concept to grasp, Joe Public probably can't (at first) discern from the wealth of information presented when they view their credit history whether they would be viewed as good, mediocre or poor by a lender. So to assist with this, the CRAs have (I assume) developed an algorithm that looks at all your available credit history, the good and the bad, and generates a 'score' which gives the individual an approximate idea of how a lender might view them when considering them for credit.

Yes, this score won't always accurately represent the conclusion a lender might come to, but as a rough indicator it's a useful tool and certainly shouldn't be ignored. To say it 'isn't important at all' is misleading. It would be more helpful to inform newbies that their score isn't the be all and end all, and should be monitored in conjunction with the data available in their history to gain a more complete picture of your finances.

To answer the original question, simply clearing the whole balance each month will be viewed favourably by lenders as it shows good money management skills, which will improve your 'score' whether you pay attention to it or not.

I couldn't agree more and have recently made a post pointing it out the same as you.
https://forums.moneysavingexpert.com/discussion/5953476/credit-score-dropped-in-a-month#3

People feel smug about saying "your score doesn't matter" and is "completely random" though.

It's a bit akin to when an electrician says "Bulbs get planted in the garden mate, those are lamps..."

It just a way of underhandedly saying "i know more than you". However if you look, it's always the same offenders. It's only really 2 or 3 people that peddle it.

I totally agree that short smug, and flippant comments like "Your score doesnt matter" to new posters could very well see them leaving the forum with the opinion that their credit file/history/status doesn't matter at all.

[Deleted User]

Darkslider wrote: »

I don't understand why this attitude is so prevalent on this forum. It's not a difficult concept to grasp, Joe Public probably can't (at first) discern from the wealth of information presented when they view their credit history whether they would be viewed as good, mediocre or poor by a lender. So to assist with this, the CRAs have (I assume) developed an algorithm that looks at all your available credit history, the good and the bad, and generates a 'score' which gives the individual an approximate idea of how a lender might view them when considering them for credit.

Yes, this score won't always accurately represent the conclusion a lender might come to, but as a rough indicator it's a useful tool and certainly shouldn't be ignored. To say it 'isn't important at all' is misleading. It would be more helpful to inform newbies that their score isn't the be all and end all, and should be monitored in conjunction with the data available in their history to gain a more complete picture of your finances.

To answer the original question, simply clearing the whole balance each month will be viewed favourably by lenders as it shows good money management skills, which will improve your 'score' whether you pay attention to it or not.

Because the scores that are given here in the UK are nothing like the scores in the USA where they do actually mean something.

It shouldn't even be used as a rough indication - calling it that is still being too generous

It's not a true indication, or a rough indication, and not a part of ones credit files they should look to "improve" as it's a pointless exercise.

[Deleted User]

beany_bot wrote: »

I couldn't agree more and have recently made a post pointing it out the same as you.
https://forums.moneysavingexpert.com/discussion/5953476/credit-score-dropped-in-a-month#3

People feel smug about saying "your score doesn't matter" and is "completely random" though.

It's a bit akin to when an electrician says "Bulbs get planted in the garden mate, those are lamps..."

It just a way of underhandedly saying "i know more than you". However if you look, it's always the same offenders. It's only really 2 or 3 people that peddle it.

I totally agree that short smug, and flippant comments like "Your score doesnt matter" to new posters could very well see them leaving the forum with the opinion that their credit file/history/status doesn't matter at all.

Again, you're taking things out of context and twisting it.

There's a sticky at the top of the forum - give it a read.

Telling someone there score doesn't matter is not a way of saying their file/history/status doesn't matter, otherwise that would be stated.

The "score" is complete separate from those, and is named differently for that reason.

Besides it's not about being smug or "holier than thou" - those sorts of comments ususally come from people who have been proven wrong in the past and took offence to it