Paying off balance in full each month

GemmaC

Hi,

I have a couple of credit cards and I always pay the balance off in full each month - unless it was a 0% offer, in which case I'd make sure I made at least the minimum payment. I was thinking the other day that I always pay it quickly - for example my bill has just come in at 700. I could pay it immediately but should I wait until nearer to the last payment date so that I keep the money in my account and accrue maximum interest on it? At the moment it's in an e-saver and I would usually transfer it immediately to my current account and then pay the bill.

Thanks

Gemma

~Chameleon~

When making manual payments I always make the payment 3-4 days before the due date on the statement to make sure it reaches them in time. If you set up a direct debit payment will actually be taken on or after the due date.

Why pay them early if you can make a little interest on the money yourself?

BenL

When my bill comes I log onto internet banking and set up a forward dated bill payment from my account for the full amount so know it is done. I can then forget about it and the banks system will sort it out for me.

Are you using cashback or rewards cards for maximum moneysaving as you pay your bill in full?

whu

~Chameleon~ wrote: »

When making manual payments I always make the payment 3-4 days before the due date on the statement to make sure it reaches them in time. If you set up a direct debit payment will actually be taken on or after the due date.

Why pay them early if you can make a little interest on the money yourself?

I do the same

GemmaC

Thanks both - some good advice there.

I didn't know I could set up a forward dated bill payment. I usually just do it straight away so that I know where I am with money and I know what is left etc, rather than having it sitting in the account and me thinking I have more money than I do! :-)

No, I don't have a cashback/reward card, it's just a Gold credit card with Nationwide. I have just applied for the Halifax 0% card as we are thinking of going away at Christmas and I thought it would make more sense to pay it off gradually.

Milarky

GemmaC wrote: »

No, I don't have a cashback/reward card, it's just a Gold credit card with Nationwide. I have just applied for the Halifax 0% card as we are thinking of going away at Christmas and I thought it would make more sense to pay it off gradually.

Just check how long it takes for a payment leavings HFX to reach NW CC. I say this because payments to HFX CC from NW CA are a day quicker than standard. It's possible your payments from HFX only need a single day to arrive...

moneypooh

"When my bill comes I log onto internet banking and set up a forward dated bill payment from my account for the full amount so know it is done. I can then forget about it and the banks system will sort it out for me."

I do this too, and it's especially brilliant when you are away on hols when the payment is due - maximum interest and no worries it'll be paid on time while away:D

PROLIANT

Dont see the benefit of keeping money back in my bank account till the last minute, I earned an amazing £2.50 interest this month, ooh, yess, woopy doo...not. Unless you are dealing with hundreds of thousands of pounds through your account on a regular basis then you aint gonna make nee money!

DesG

If you are going abroad, use the nationwide card for your purchases, and then balance transfer it to the new 0% card when you are back, to maximise your savings.

This only applies if you can get a new card that has zero fee for balance transfers, otherwise the savings from currency conversion will be outweighed by the BT fee.

Cheers, Des.

~Chameleon~

PROLIANT wrote: »

Dont see the benefit of keeping money back in my bank account till the last minute, I earned an amazing £2.50 interest this month, ooh, yess, woopy doo...not. Unless you are dealing with hundreds of thousands of pounds through your account on a regular basis then you aint gonna make nee money!

Well obviously that will all depend upon the rate of interest you're getting in either your current or instant savings account, and also on the amount of money waiting to be paid out.

The ethos of this site is all about maximising our gains and making our money work for us rather than lining the pockets of large corporate companies.

Ever heard the saying "watch the pennies and the pounds take care of themselves"?

Ms_Chocaholic

My dear old dad used to say ... there are two bad payers, those who pay too early and those who don't pay at all !!