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Better to pay off credit card or save
RyanY3105
Posts: 19 Forumite
in Credit cards
So I've just got my first credit card and would appreciate some tips on the best way to spend and pay it off.
One thing I would like to know is if it is better to pay off the full balance as soon as it's payable on the account, wait a few days/weeks then pay it in full, pay it off in installments or just make the minimum payments every money until fully payed off?
Thanks.
One thing I would like to know is if it is better to pay off the full balance as soon as it's payable on the account, wait a few days/weeks then pay it in full, pay it off in installments or just make the minimum payments every money until fully payed off?
Thanks.
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Comments
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Unless it's at 0%, pay in full by the due date each month.1
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Forgot to mention it's 0% for 18 months.0
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Then you can pay the minimum and make a few pence interest on your savings, but make sure it's paid by the end of the promo period. Set up a DD so you don't miss payments.
If you're just looking to build some good credit history though, I would recommend clearing in full regardless.
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Clearing in full as soon as it appears on the account or as long as it's before the 0% ends?Deleted_User said:Then you can pay the minimum and make a few pence interest on your savings, but make sure it's paid by the end of the promo period. Set up a DD so you don't miss payments.
If you're just looking to build some good credit history though, I would recommend clearing in full regardless.
Is one better than the other in your opinion?0 -
Neither
After you get the statement and before the due date.0 -
So pay the balance of the card when I get my statement?
I want to do what's best to build credit.0 -
Yes.1
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Sorry to jump on board but my own personal experience: used to pay off my account once any spending had been posted to my account because I thought I was doing the 'right thing'-wasn't until I read here on MSE a fair few years ago that paying off your bill each month once the statement had been generated and before the due date would be far more beneficial.
It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.0 -
So pay off the minimum, but remember to put away the rest of the balance in a separate savings account. So once the 18 months is up. You can pay in full.RyanY3105 said:Forgot to mention it's 0% for 18 months.
Not end up hoping you get a further 0% balance transfer offer.Life in the slow lane0 -
Minimum payment OUCH!!! Old threads somewhere about that.. £5000 with just the minimum payment could
take close to 20 years to pay off depending in the interest rate.
Censorship Reigns Supreme in Troll City...0
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