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  • FIRST POST
    • feekerry
    • By feekerry 11th Apr 18, 7:50 PM
    • 76Posts
    • 26Thanks
    feekerry
    Paying card of as and when I use it
    • #1
    • 11th Apr 18, 7:50 PM
    Paying card of as and when I use it 11th Apr 18 at 7:50 PM
    Iím 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 Iím worried about waiting till I get the statement in case I havenít 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?
Page 1
    • zx81
    • By zx81 11th Apr 18, 7:56 PM
    • 18,153 Posts
    • 19,359 Thanks
    zx81
    • #2
    • 11th Apr 18, 7:56 PM
    • #2
    • 11th Apr 18, 7:56 PM
    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
    • By Dobbibill 11th Apr 18, 10:16 PM
    • 3,261 Posts
    • 4,181 Thanks
    Dobbibill
    • #3
    • 11th Apr 18, 10:16 PM
    • #3
    • 11th Apr 18, 10:16 PM
    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 Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • Ben8282
    • By Ben8282 12th Apr 18, 5:44 AM
    • 2,378 Posts
    • 1,093 Thanks
    Ben8282
    • #4
    • 12th Apr 18, 5:44 AM
    • #4
    • 12th Apr 18, 5:44 AM
    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
    • By feekerry 12th Apr 18, 7:46 AM
    • 76 Posts
    • 26 Thanks
    feekerry
    • #5
    • 12th Apr 18, 7:46 AM
    • #5
    • 12th Apr 18, 7:46 AM
    Hmm yes worth thinking about. Thanks. Maybe I just wonít use it for now. Not sure after such a long time with problem debt that Iím in the right place to use it properly.... one day maybe!!!
    Thanks all
    • Dobbibill
    • By Dobbibill 12th Apr 18, 7:57 AM
    • 3,261 Posts
    • 4,181 Thanks
    Dobbibill
    • #6
    • 12th Apr 18, 7:57 AM
    • #6
    • 12th Apr 18, 7:57 AM
    Hmm yes worth thinking about. Thanks. Maybe I just wonít use it for now. Not sure after such a long time with problem debt that Iím in the right place to use it properly.... one day maybe!!!
    Thanks all
    Originally posted by feekerry
    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
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
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