Paying Off Credit Card Balance.

[chrissa1]

Should one wait for the statement date before paying off last month’s balance, or, pay it off when/after the statement is generated? Thanks.

[Peter Pedant]

oh, yes apparently

https://www.valuepenguin.com/paying-credit-card-bill-early

[Davemano]

I no longer use a Credit card, but when I did the interest was worked out on a daily basis, so paying off as much as you can would save on the interest charges.

[Peter Pedant]

thx - dave I did wonder
with some old mortgages, they used to tot up only in December and so if you paid it down April or May they just merrily took the money and went on charging !

[vetuste_ennemi]

It sounds as if you pay off the balance in full each month, Chrissa, in which case no interest will be charged on your purchases. I believe cash withdrawals, on the other hand, incur interest immediately.

[Davemano]

PP - yes, mortgage rate interest is worked out annually, but does change of there is an interest rise or reduction.

[Davemano]

In short chrissa, pay as much as you can - as soon as you can.

[ladybirder]

Chrissa if you can, set up a DD to pay off the balance every month. It then happens without you having to worry about it. Just make sure you have enough money in your account to cover that month's payment.

[chrissa1]

My new statement is generated on 25th of the month. So if I pay off what is owing before then and don’t buy anything with the card until after 25th, is that the most most beneficial way to use it?

Sorry. I’m a bit out of practice with credit cards these days.

[chrissa1]

I’ve got a dd for the minimum amount each month but like to pay it off in full.

[ladybirder]

Meant to also say, if you are paying off the whole balance as it sounds as if you are, there is no advantage to paying it early. I leave mine in my current account earning a wee bit of interest until my DD kicks in and of it goes.

[ladybirder]

Then change your DD to take the balance each month Chrissa.

[chrissa1]

I use the minimum dd as a backstop, ladybirder. To make sure I never fall behind with my payments.

[ladybirder]

So you don't want to pay off the whole balance every month then Chrissa? Sorry it sounded as if you did.

[vetuste_ennemi]

So any outstanding balance will accrue interest daily, Chrissa, as earlier posters pointed out. So, sooner the better.

[chrissa1]

Got it!! Thanks.

I do try to pay it off in full Lb, but just want it there in case an MOT bill pops up etc which would denude my bank account that month.

Thanks all.

[ladybirder]

v_e, if you pay off your balance in full, on time, every month, you don't pay any interest.

If you only pay part of it off then yes, best to pay it as soon as you can to save yourself some interest.

I have never, ever, paid interest on my Barclaycard as I clear it every month. In fact Barclaycard pays me 0.5% interest everything I spend with them.

https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/credit-cards/the-costs-and-charges-of-credit-cards/

[vetuste_ennemi]

Got the same deal with my Nationwide Visa, Ladybirder. Not sure, though, if new customers get the cash reward.

[chrissa1]

My 0% has just run out and even though the interst rate is better than my old card, Vanquis, do you think I could switch to another 0% card soon?

[ladybirder]

Have a look here Chrissa. I think you probably could swap but you need to build up a good payment record and if you swap too often, too early, you could make it more difficult for yourself. Off to bed now. Nighty night;-)
https://www.moneysavingexpert.com/eligibility/credit-cards/?gclid=EAIaIQobChMIs4en0vWR4QIV65XtCh0NDQVNEAAYASADEgI7BfD_BwE