Paying card of as and when I use it

feekerry · 11 April 2018 at 7:50PM

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?

[Deleted User] · 11 April 2018 at 7:56PM

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.

Dobbibill · 11 April 2018 at 10:16PM

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.

Ben8282 · 12 April 2018 at 5:44AM

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 0

feekerry · 12 April 2018 at 7:46AM

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

Dobbibill · 12 April 2018 at 7:57AM

feekerry wrote: »

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

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).
It would be a shame to lose the cashback you are getting

Paying card of as and when I use it

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