Paying off card as soon as the statement comes in

moneywow1

I don't like to leave too much money in my current account, just in case my card gets stolen or something.

My credit card statement which I have a direct debit set up to pay in full just came through, and I was wondering if it matters if I pay it off instantly or not, since I don't want to leave too much money in my debit account, but also don't want to forget before the direct debit goes out.

If I pay it off in full, will it appear as though I'm not using the card, or will lenders still see it as being used and paid off?

[Deleted User]

As long as you're paying off after the statement, it will be shown as used and cleared in full each month.

If you do decide to clear it manually now, make sure you understand how that payment will interact with the DD.

Willing2Learn

The statement balance is recorded on you credit file. The total monthly payments made will also be recorded on file. So paying off in full each month by DD is positive data recorded on your three credit files.

bengal-stripe

Some cards will adjust or cancel the DD if a previous payment has been made. Others will not, they'll take the DD amount as listed on the statement regardless.

Check how your card operates, otherwise you might pay now in full and three weeks later the same amount gets called-in a second time by DD.

18cc

Yes I agree - be careful because it depends who you are with.

Take Lloyds for example - statement is say £300, you then pay off £300, Lloyds will take £300 DD regardless!

Other CC operate differently.

You would be better paying off a chunk JUST BEFORE the statement date.

Willing2Learn

18cc wrote: »

You would be better paying off a chunk JUST BEFORE the statement date.

Why? Please explain...

eco_warrior

Sounds a bit OCD to me.

I’ve known customers to use a credit card daily but also make a payment to the card that corresponds to each transaction they make.

moneywow1

Thanks for the replies.

AMEX app says the DD will be adjusted, and the DD isn't due for another 3 weeks

moneywow1

Willing2Learn wrote: »

Why? Please explain...

Assuming that's so a lower balance is reported to the CRAs lowering the debt:credit ratio

Terry_Towelling

If you are so worried about having money in your current account, there are three solutions.

1. Stop worrying - what's the point? Surely you have enough about you to not spend it when you know it will be needed later. OR
2. Use a debit card for payments instead. OR
3. Every time you use your credit card, move a like amount into a savings account to earn interest. When you get your card bill, arrange to move the required amount back from your savings account a few days before the DD is collected.

Ben8282

Willing2Learn wrote: »

Why? Please explain...

My interpretation of this was in the context of direct debits on the assumption that payments made would not reduce the direct debit amount.