Better to pay off credit card or save

Voyager2002

RyanY3105 said:

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.

The only important thing from the point of view of building your credit history is that there must never be any missed or late payments. So set up a direct debit (so the payment is taken automatically) and remember that since it takes time to set up, pay the first month manually.

'Stoozing' might be worthwhile: use one of the regular savings accounts offered by certain banks to build up funds to pay off the card, while setting the direct debit to take only the minimum payment.

At the end of the interest-free period, when you have a large lump sum to pay from your savings, consider using a debit card from a Tesco bank account to do so. That way, you get a bunch of Clubcard points.