Using Credit Card to Improve Credit Score

Barkin

corkyefes said:

Thanks all for your help...

My statement is due in the 15th, so i will wait for that and pay it off in full before the payment date of the 23rd.

That's it 👍

Just to be clear... when you get your statement, it`ll probably show 2 figures. 

Your current card balance, and your statement balance.

It's only the latter that needs to be paid by the due date, in order to avoid interest.
If the card balance is more than the statement balance, don't worry. It's an interest free loan until your next statement!

Brie

Just to be clear....I have a card where there's a statement generated at the beginning of each month (usually the 1st but sometimes the 31st of the previous month or the 2nd.).  The payment is due on the 25th of the month so I need to ensure the balance is cleared by that date.  Most cards will charge interest if you go past the payment due date but not all but it's safest to set your card DD to pay in full and the payment will be taken on the right date.  

Your credit history shows a number of other things like whether you are on the electoral roll, whether you have a phone contract, pay your car insurance monthly, if you have an overdraft even if you are not using it plus many of the standard bills that people get behind on.  It also shows your recent (last 20 years?) addresses so moving a lot will be obvious.  It will also show who else has lived at those addresses so shared student flats, hostels etc may be obvious.

Worry about the things you can do something about and just be aware of the others.

molerat

this is why i always wait for the statement and pay about £5 interest.

This is the bit that is confusing me. Why are you paying interest ?  As others have said if you are paying off the full statement balance before the due date then you should not be paying any interest.  Unless you have one of the very few cards that do not have an interest free period.  If that is the case then you need to get a different card.

Nasqueron

molerat said:

this is why i always wait for the statement and pay about £5 interest.

This is the bit that is confusing me. Why are you paying interest ?  As others have said if you are paying off the full statement balance before the due date then you should not be paying any interest.  Unless you have one of the very few cards that do not have an interest free period.  If that is the case then you need to get a different card.

He's not paying off in full hence the interest