Paying in full, wait for the bill or pay off as and when?

collins74

I don’t think it’s mad, it’s a preference for budgeting purposes that’s all.  Since the advent of Apps it takes seconds only.  As people have said, it’s personal preference based on individual circumstances. 

Grabs39

I have a credit card which I usually just use for online shopping,  I find spending can get away from me a little so I pay it off every time I use it.  It’s with the same Building Society as my current account so it’s not an inconvenience at all.  I check my balance on the app daily anyway, so just do a quick transfer - it takes ten to fifteen seconds.  

My other card I use for buying things for the house, occasionally groceries and petrol for reward points etc.  I just pay that off on payday.

There’s no right or wrong answer, just whatever works.

badmemory

Setting your card to be paid in full by DD has a benefit not already mentioned.  What if you get sick or get knocked down by a bus?  So you can still pay bits off during the month but have a back up for if things go wrong.  Free insurance that you are unlikely to need unless you haven't got it.

[Deleted User]

badmemory said:

Setting your card to be paid in full by DD has a benefit not already mentioned.  What if you get sick or get knocked down by a bus?  So you can still pay bits off during the month but have a back up for if things go wrong.  Free insurance that you are unlikely to need unless you haven't got it.

At the point I'm unable to use a banking app or website, I'm unlikely to care about paying a credit card bill.

When using Amex, there is actually a shorter interest free period when using Direct Debit versus paying by Faster Payment. 

General_Grant

Horses for courses - whatever works for you.

I have DDs set up for full payment and simply need to ensure there will be enough money in the current accounts when the payment is taken.

Only time I would make an interim payment is if I were about to make a large CC purchase and needed to have a higher balance available in order for that to go through.

Elmer_BeFuddled

Changed my NatWest A/C to a rewards account 32 months ago and got the CC to go along with it.which gives a 1% kickback on supermarket shopping although a seriously depleted kickback on DD's. Buy my lunches with the credit card instead of my debit card and pay off when I've a boring moment to get through. So far had £380+ in goodie pennies. Which, in the good old days, would most likely have used cash.

born_again

collins74 said:

However my point is that if lenders use the same criteria as the credit ref agency in terms of utilisation, then this could mean you do not get accepted for certain types of credit?

I think the scores are used by the credit ref agencies as a sales/marketing tool.

All any lender will look at is what you owe (in total) against what you earn. Not that you are only using x% of any available credit on a card.

In fact what you are doing, is a good way for them to drop your limit. To reduce their risk, as it is clear you do not need such a high limit.
Yes I know many won't but some will (Barclaycard being one)

Paying off a CC as you spend is pointless, as the whole point of a CC is the X days interest free credit. If you would rather pay as you spend, then you may as well just use your debit card.

collins74

Paying off a CC as you spend is pointless, as the whole point of a CC is the X days interest free credit. If you would rather pay as you spend, then you may as well just use your debit card.

I don’t agree - you can receive cash back/rewards on purchases that are unlikely to with a debit card and greater protection for more significant purchases.  I received £350 CB this year on my Amex which otherwise I would not have done had I used the debit card as you suggest. As an earlier poster said, paying off every few days or once a week can help if lose track or for budgeting purposes. 

Zellah

born_again said:

collins74 said:

However my point is that if lenders use the same criteria as the credit ref agency in terms of utilisation, then this could mean you do not get accepted for certain types of credit?

I think the scores are used by the credit ref agencies as a sales/marketing tool.

All any lender will look at is what you owe (in total) against what you earn. Not that you are only using x% of any available credit on a card.

In fact what you are doing, is a good way for them to drop your limit. To reduce their risk, as it is clear you do not need such a high limit.
Yes I know many won't but some will (Barclaycard being one)

Paying off a CC as you spend is pointless, as the whole point of a CC is the X days interest free credit. If you would rather pay as you spend, then you may as well just use your debit card.

Since when does paying by a debit card offer S75 protection?

MDMD

collins74 said:

Paying off a CC as you spend is pointless, as the whole point of a CC is the X days interest free credit. If you would rather pay as you spend, then you may as well just use your debit card.

I don’t agree - you can receive cash back/rewards on purchases that are unlikely to with a debit card and greater protection for more significant purchases.  I received £350 CB this year on my Amex which otherwise I would not have done had I used the debit card as you suggest. As an earlier poster said, paying off every few days or once a week can help if lose track or for budgeting purposes. 

But how much did you have to spend to get this? Assuming it was all at the 1.25% rate on the Amex Platinum Cashback card, that will be over £28,000, probably more as some will have been 1%.