Explain to an idiot paying C/C In full - ref credit rating

themadhouse

I am improving my credit rating and generally its going well. However I made a small !!!!!! up to do with paying my credit card off in full and when it updates to the credit reference agencies.

I am using Vanquis. My payments are due on 6th each month.
My statements are generated on either 11th or 12th of each month. This figure is reported to the credit reference agencies.
If I clear the balance on/by 6th each month and don't use it for a week the statement will remain zero - as recommended by The Martin Lewis money show on ITV.
However if I use the card the payment won't be due until the following month and so will generate a statement saying I owe XYZ.

Let me give you an example.

Jan 6th Paid off in full.

Jan 12th statement generated zero balance, as card not used since paying off in full. Balance reported to credit reference agencies around 8th Feb.

Jan 13th - Feb 5th card used.

Feb 6th no payment required as Jan 12th statement is zero.

Feb 12th statement will show a balance of whatever was spent between Jan13th - Feb 5th - reported to credit agencies around 8th March lowering score (this just happened due to timings).

How can I avoid this do I just clear the balance manually on 6th a month before its due.

I REALLY hope I made sense :-s

[Deleted User]

As long as you clear in full each month, you don't need to worry about the reporting dates or the pretend scores.  

Lenders will see that the statement balance matches the payment.

Shakin_Steve

You have 104 posts, so you must have come across others telling you that your credit 'score' is meaningless, generated purely for you to stress over. No company that searches your file can see it. What they will see is a credit card with a reported balance of zero each month. Much better for them to see a running balance which is paid in full each month.

themadhouse

I understand the score means nothing, but reporting that I am able to pay my credit card off in full must be good for any lender?

Thats why I want the reported figure to be £0.00 to the credit reference agencies.

I am only nit picking. I have only two issues:

1 - Not on the electoral roll (registered 8 weeks ago, dropped off for some reason, waiting to update).

2 - A defaulted account I am trying to agree a settlement on.

I just want to demonstrate I am responsible with debt and can manage it.

Willing2Learn

You should only be making payment to your Vanquis account once you have received the monthly statement.  The way you are doing it makes it look as though you are not using the account (from the perspective of a potential creditor)

D3xt3r5L4b

The statement balance and amount paid will tally each other out month on month. 

themadhouse

Ah so just set up the DD to settle in full?

Jami74

themadhouse said:

Ah so just set up the DD to settle in full?

Yes! Absolutely do that, then lenders will see that you use a credit card regularly and always pay it off. My cards and accounts seem to report on different days, not always the same date each month and some months it doesn't show at all. 

sourcrates

You are way overthinking this issue, simply pay the statement before the due date and get on with life, as much as you can under lockdown anyway, none of this matters a jot unless you intend taking out further credit, and even then your making very hard work of it.