Pay off BT card in one go or minimum per month

PeelyPeel

Hi All

I got a BT card several months ago, to move from CC debt of off a card charing me interest. Time has moved on, and I now have the money to pay off the BT cards debt (which I didn't at the time of the transfer).

ATM, the money I have is in an ISA earning some interest. Not a lot of interest, but more than if I didn't have it because I paid off my card. Every month, I paid off the minimum required to have the card paid off before the 0% period runs out.

I'm just wondering, is this a bad idea? Does it make my credit score look terrible? Should I just pay it all off because I can, and ignore the little bit of interest it's earning me. It's about £3500 if that makes a difference.

Thanks

ndf9876

If I were in your shoes, I would be paying the minimum plus a pound and keeping the £3500 in an account that bore as much interest as possible. A month before the 0% expires, I'd use that lump sum to pay off the card in full.

Of course, if you have any big credit decisions (e.g. mortgage) coming up, that may not be a suitable course of action. I suppose whether or not you should pay the card off depends on what your overall credit position is.

[Deleted User]

If you're on a 0% promo then lenders will see this.

They don't see or care about your "credit score" and neither should you.

PRAISETHESUN

ndf9876 wrote: »

If I were in your shoes, I would be paying the minimum plus a pound and keeping the £3500 in an account that bore as much interest as possible. A month before the 0% expires, I'd use that lump sum to pay off the card in full.

Of course, if you have any big credit decisions (e.g. mortgage) coming up, that may not be a suitable course of action. I suppose whether or not you should pay the card off depends on what your overall credit position is.

This is what I'd do - this is called "stoozing" and will allow you to maximise the return on your money. The only time I'd reccomend against this is if you feel that you might spend the money you set aside, leaving you with a huge interest bill to pay when the promo ends.

PeelyPeel

Ok cool, thank you everyone. It's basically what I expected, but I just wanted to check with people that would know.

Thanks again.