Using credit card for our monthly spending and paying off in full each month

Jb1990bo

Wasn’t sure which section to put this in.

Me and my partner have been using a credit card of mine for our monthly spending (food/fuel/purchases). We pay most/if not all of it off by the payment date. Is this something that can cause issues when going in for mortgage/remortgaging? Do lenders
prefer you to use your bank accounts
for this type of spending?

Not sure whether to revert back to our joint account but just seems messy with all our outgoings that go out of there hence us using the credit card. 

Thanks

[Deleted User]

I would keep using it, but make sure you clear ALL of it, not just most.

MWT

Jb1990bo said:

We pay most/if not all of it off by the payment date...

Just change that part to 'all of it' and then don't worry about it.

Jb1990bo

Mickey666 said:

I've used a credit card in the way described for over 30 years with the balance being fully paid off every month by direct debit.  Using cashback cards has netted me a few £1000 over that time.  I never had any problems with obtaining mortgages when I needed them.

I seriously doubt that lenders would care how you managed your monthly spending, whether by credit or debit cards, cheques or cash.  They are far more likely to want to see a pattern of living within your means and effectively managing any credit/debt you might have.  I'd argue that using a credit card in this way is explicit proof that someone can manage their finances in a responsible manner.  Besides, ultimately, you are still using your bank account for your spending, just accumulating monthly spend on the card and then paying it all off each month from your bank account.

I wouldn't worry about it.

@Mickey666 cheers for the reply. We didn’t manage our money in this way when we last went in for the mortgage so wasn’t sure if it was frowned upon etc. We did have a patch a few months ago where we were overspending and not paying it all off as my partner wasn’t earning her usual amount due to self isolation and not getting any sick pay and also Christmas too. We are going to wait a couple of months so we’re clear of it if they ask for statements so all should be good. 

Jb1990bo

@MWT sometimes we find there’s £100-200 on there as we pay it off the last time my partner gets paid (weekly pay) before the statement is due. The statement is usually due the say before I get my monthly pay. Would it be better to set the direct debit up to clear the balance do you think? We had a rough patch with her work before and during Christmas so didn’t really want to commit to that, incase we went over in that period and couldn’t meet the full balance. 

MWT

The easiest way is simply to set the DD to pay the full balance each month so there is no interest charged.

You always have plenty of time between receiving the statement and the payment being taken so you can change it in case of emergencies, but as a rule if your income is less you also know that in advance so aim to spend less...

Jb1990bo

@MWT we usually would aim to spend less but it was over the Christmas period and we went a bit over what we normally would. We’ve pretty much cleared it now so if we give it a couple/few months it shouldn’t show up if they ask for 3 months statements. Also I need to wait so I have a month clear from a short period of furlough I am about to have.