We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Zopa CC Payments
Comments
-
You've been doing it wrong. You shouldn't be paying it until it appears on the statement (i.e. when they bill you for it).
It makes it look like you don't use your credit card, and should you use it for something which attracts immediate interest, you'll end up paying more interest than you would otherwise if you used it correctly
I consider myself to be a male feminist. Is that allowed?0 -
I don't understand your reply
0 -
Paying your CC when the transaction clears presumably means you're making each payment within a few days of the original transaction, i.e. your credit amount is usually very low and you are making frequent payments (i.e. one per transaction) each week/month.
For most people the usual way to operate a CC is to use it for spending, and then only pay it off via one payment each month before the statement due date. This avoids the CC charging interest for the credit provided the payment is made within the required timeframe (usually 5-7 days from the statement publication date).
There's nothing wrong with what you're doing per se but I presume @surreysaver's point is by paying it off so quickly you're losing out on one of the benefits of CCs i.e. that you're spending the CC company's money and yours can be sat in another account earning interest for a few weeks until you pay the CC once a month. Also in terms of credit scores the conventional wisdom is building up a decent credit balance and paying it off regularly each month is the easiest way to show you are a creditworthy person. Building up smaller credits and making several payments each month would be atypical which might look "odd" to other lenders.
1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.6K Banking & Borrowing
- 254.8K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.2K Work, Benefits & Business
- 605.8K Mortgages, Homes & Bills
- 179K Life & Family
- 263.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards