Paying off part of balance (whilst having DD setup for full balance)

lw373

Hi all,

This is probably a stupid question but I wanted to make sure anyway

I wanted to make a small payment to pay off some of my balance on my card but I also have a DD set up to pay the full balance (this will go through no issues later this month). Will making a small payment show up negatively on my credit score/report at all? I was worried it would indicate an inability to pay off the balance (even though the balance will be paid off on the due date).

Like I said, silly question but I just wanted to check.

Thanks

Willing2Learn

lw373 wrote: »

...I wanted to make a small payment to pay off some of my balance on my card but I also have a DD set up to pay the full balance (this will go through no issues later this month). Will making a small payment show up negatively on my credit score/report at all?...

The total amount you have paid in the monthly cycle will be recorded on your credit report. Nothing negative. Nothing positive. Just simply neutral.

lw373

Willing2Learn wrote: »

The total amount you have paid in the monthly cycle will be recorded on your credit report. Nothing negative. Nothing positive. Just simply neutral.

Perfect, thanks!

fifeken

Beware some credit cards will take the full statement balance by DD despite you having already made a manual payment. There are several threads on here where it's been mentioned.

If you name the issuer someone may know if it affects you, or look up the latest Ts and Cs.

2e0arr

each month when i get the statement i pay the balance except £5 on tesco and waitrose cards. they are both set to pay in full what i, but ony pay the £5 balance on each. thes two DD help trigger interest on my santander 123's .

born_again

Just make sure it's not within 5 days of DD being due. As the DD process can start that early.

Will not effect your credit score, not that makes any difference.

nickcc

fifeken wrote: »

Beware some credit cards will take the full statement balance by DD despite you having already made a manual payment. There are several threads on here where it's been mentioned.

If you name the issuer someone may know if it affects you, or look up the latest Ts and Cs.

Halifax certainly do. I paid off my foreign holiday spend in full when I returned home and they advised me to cancel my DD and reinstate it after the usual payment date.

IvanDP

I may be wrong, but i would have thought that if you make a manual payment, then the direct debit would just pay off the remaining balance after that payment has been taken into account.
I very often make intermediate payments to my credit card, purely for convenience as I am paid weekly but as you know, direct debits are taken monthly.

boo_star

IvanDP wrote: »

I may be wrong, but i would have thought that if you make a manual payment, then the direct debit would just pay off the remaining balance after that payment has been taken into account.
I very often make intermediate payments to my credit card, purely for convenience as I am paid weekly but as you know, direct debits are taken monthly.

It depends on the issuer.

Some may adjust the DD up to a certain date. Others collect the full amount regardless.

Common sense would dictate that the former is preferable but not everyone uses it.

phillw

boo_star wrote: »

Common sense would dictate that the former is preferable but not everyone uses it.

For the borrower it would be preferable to reduce the DD if you make a manual payment, but for the issuer not to.

I had a similar issue with halifax because of a refund. It was annoying.

nickcc

IvanDP wrote: »

I may be wrong, but i would have thought that if you make a manual payment, then the direct debit would just pay off the remaining balance after that payment has been taken into account.
I very often make intermediate payments to my credit card, purely for convenience as I am paid weekly but as you know, direct debits are taken monthly.

All my credit card DD's are set to pay in full every month so no remaining balance in my case. Halifax (Lloyds) state in their terms and conditions their system still takes the full DD payment wether you pay it off prior to the payment date or not.