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Paying card of as and when I use it
feekerry
Posts: 76 Forumite
in Credit cards
I’m low debt free after a long time of having issues. I have one credit card I kept with some cash back on spending. Is it a problem if I use the card a couple of times a month then pay it off as soon as the transaction appears on my online banking? I basically get some nice cash back for using it for petrol and shopping etc but I’m worried about waiting till I get the statement in case I haven’t budgeted well enough and end up not paying it in full. Do not want to run up balances ever again! So I have been using it occasionally, getting the cash back then paying it off normally the next day? Will the credit card company see this as an issue? Or not being used correctly?
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Comments
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If you clear as you go, it may look as if you're not using so won't help to build history.
But if that's not an issue for you, and need to control your spending issues, the you can do as you suggest.0 -
It's not a problem as such - it just means your credit reports won't show you are using the card as it will always be a zero balance.
As zx has said, if this prevents you slipping up and not budgeting correctly then carry on as you are as your better to have the benefits of cashback than risk incurring interest by not paying it off in full.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
I would suggest that you stop doing this and instead set up a direct debit to repay the card in full each month. This will prevent you from running up balances.
You say that you only use the card a couple of times a month. In your own records just note these amounts as if they had been paid to the credit card company but instead leave them in the bank account to be taken by direct debit.
Although there is nothing wrong as such with what you are doing, it is not the commonly accepted way to conduct a credit card account and will produce some strange entries on your credit files such as
Balance 0
Payment 150
Previous Balance 00 -
Hmm yes worth thinking about. Thanks. Maybe I just won’t use it for now. Not sure after such a long time with problem debt that I’m in the right place to use it properly.... one day maybe!!!
Thanks all0 -
What about setting up a DD from a different account so instead of transferring straight to the card you transfer to the other account (bills account for example).Hmm yes worth thinking about. Thanks. Maybe I just won’t use it for now. Not sure after such a long time with problem debt that I’m in the right place to use it properly.... one day maybe!!!
Thanks all
It would be a shame to lose the cashback you are getting
I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0
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