Credit card repayments - when best time ?
Discussion
Hi all,
I have a Nationwide credit card, which I generally use for all fuel, and item (non food) purchases from the likes of Tesco, Asda, Argos, etc. Big ticket items, car deposits, etc. and every thing on-line like flights, and holidays.
I pay it off in full every month.
But what I try to determine is, when is the best time of teh month to use it, and when not to use it, as in relation to paying it all back, if you know what I mean.
As an example, my payment date is say 26th of the month.
I am not sure what the period is, from when I am in the shop spending, to when I repay it on-line
Is there a maximum time in days, where one buys, then is needed to repay?
I never fail to pay the full outstanding, as I generally use the CC for the protection, rather than spending my "own" money with my debit card.
R1
I have a Nationwide credit card, which I generally use for all fuel, and item (non food) purchases from the likes of Tesco, Asda, Argos, etc. Big ticket items, car deposits, etc. and every thing on-line like flights, and holidays.
I pay it off in full every month.
But what I try to determine is, when is the best time of teh month to use it, and when not to use it, as in relation to paying it all back, if you know what I mean.
As an example, my payment date is say 26th of the month.
I am not sure what the period is, from when I am in the shop spending, to when I repay it on-line
Is there a maximum time in days, where one buys, then is needed to repay?
I never fail to pay the full outstanding, as I generally use the CC for the protection, rather than spending my "own" money with my debit card.
R1
The date you care about is your statement date, rather than payment date.
For example, my statement is on the 19th, with payment on the 7th. So for maximum credit, buying stuff on the 20th gives me 56 days of interest free credit(1 month to statement it appears on plus 17 days to payment day). Buying something on the 18 gives me 18 days of interest free credit(1 day to statement issue, 17 days till payment due).
For example, my statement is on the 19th, with payment on the 7th. So for maximum credit, buying stuff on the 20th gives me 56 days of interest free credit(1 month to statement it appears on plus 17 days to payment day). Buying something on the 18 gives me 18 days of interest free credit(1 day to statement issue, 17 days till payment due).
As above...
Just not sure why you would ... I'm not going to buy this today - because if I buy it in 3 weeks time I wont have to pay for it for 56 days?
If you can't afford it - don't buy it ;-)
And yes put it auto payment in full on direct debit - really removes any thoughts about letting it ride, and means you don't accidentally "forget".
S.
Just not sure why you would ... I'm not going to buy this today - because if I buy it in 3 weeks time I wont have to pay for it for 56 days?
If you can't afford it - don't buy it ;-)
And yes put it auto payment in full on direct debit - really removes any thoughts about letting it ride, and means you don't accidentally "forget".
S.
51mes said:
As above...
Just not sure why you would ... I'm not going to buy this today - because if I buy it in 3 weeks time I wont have to pay for it for 56 days?
If you can't afford it - don't buy it ;-)
And yes put it auto payment in full on direct debit - really removes any thoughts about letting it ride, and means you don't accidentally "forget".
S.
It's a credit card, so hardly an unreasonable query and often entirely discrete of affordability concerns.Just not sure why you would ... I'm not going to buy this today - because if I buy it in 3 weeks time I wont have to pay for it for 56 days?
If you can't afford it - don't buy it ;-)
And yes put it auto payment in full on direct debit - really removes any thoughts about letting it ride, and means you don't accidentally "forget".
S.
Direct debit doesn't work for everybody. It doesn't work for me because I put virtually everything through credit cards for both me and the fiance, and pay off from multiple accounts, both mine and joint. It isn't rocket science to make sure I don't forget. Or "forget", if that means something else!
I just set up my DD for 3 days after I get paid. The DD clears my full balance. I give myself 48 hours to change it from full balance to a lesser amount if I realise I am falling short of paying it that month. My rent & electricity clears my account the day after I am paid. All of my other costs go on the credit card (fuel, food etc). Gotta build that credit rating somehow 
iphonedyou said:
It's a credit card, so hardly an unreasonable query and often entirely discrete of affordability concerns.
Direct debit doesn't work for everybody. It doesn't work for me because I put virtually everything through credit cards for both me and the fiance, and pay off from multiple accounts, both mine and joint. It isn't rocket science to make sure I don't forget. Or "forget", if that means something else!
It wouldn't work for me. Some months I spend more and need to dip into savings so there isn't enough in the current account.Direct debit doesn't work for everybody. It doesn't work for me because I put virtually everything through credit cards for both me and the fiance, and pay off from multiple accounts, both mine and joint. It isn't rocket science to make sure I don't forget. Or "forget", if that means something else!
blinkythefish said:
The date you care about is your statement date, rather than payment date.
For example, my statement is on the 19th, with payment on the 7th. So for maximum credit, buying stuff on the 20th gives me 56 days of interest free credit(1 month to statement it appears on plus 17 days to payment day). Buying something on the 18 gives me 18 days of interest free credit(1 day to statement issue, 17 days till payment due).
That's the stuff I was after, For example, my statement is on the 19th, with payment on the 7th. So for maximum credit, buying stuff on the 20th gives me 56 days of interest free credit(1 month to statement it appears on plus 17 days to payment day). Buying something on the 18 gives me 18 days of interest free credit(1 day to statement issue, 17 days till payment due).
Thanks,
caelite said:
I just set up my DD for 3 days after I get paid. The DD clears my full balance. I give myself 48 hours to change it from full balance to a lesser amount if I realise I am falling short of paying it that month. My rent & electricity clears my account the day after I am paid. All of my other costs go on the credit card (fuel, food etc). Gotta build that credit rating somehow
This is true but, in relation to credit rating for future credit cards it may not be of any help. Paying stuff off on time or early builds you up a good credit rating as doing so obviously makes you a good lending risk.This, however, is the opposite of what credit card providers want to see because they never make any money from you. It's sometimes worth letting a small balance carry over for a few weeks so you pay a bit of interest thereby looking slightly attractive to other card companies. You never know when you might be applying for a different card.
My daughter gave me a stiff talking to last time we visited England: "Dad, I see you are using your credit card an awful lot the last few weeks, are we okay financially?"
Her only experience regarding cards is the pitiful performance of her mother, and the regular arguments we used to have over aforementioned mothers horrendous credit card usage. And daughter is but 15.
I have since explained to her the benefits of credits cards, and how to use them correctly, and explained that last year I paid just £0.07 interest on my card despite running about £15,000 through it.
Usually I go into my online HSBC about once a month and clear the outstanding. Not too sure what date it is meant to be paid off.
I have barclaycard too, but for some reason they reject any attempt to use the card for online purchases, airline tickets etc, without even asking security questions or offering any explanation. So, they don't get my 'business'.
Her only experience regarding cards is the pitiful performance of her mother, and the regular arguments we used to have over aforementioned mothers horrendous credit card usage. And daughter is but 15.
I have since explained to her the benefits of credits cards, and how to use them correctly, and explained that last year I paid just £0.07 interest on my card despite running about £15,000 through it.
Usually I go into my online HSBC about once a month and clear the outstanding. Not too sure what date it is meant to be paid off.
I have barclaycard too, but for some reason they reject any attempt to use the card for online purchases, airline tickets etc, without even asking security questions or offering any explanation. So, they don't get my 'business'.
51mes said:
Just not sure why you would ... I'm not going to buy this today - because if I buy it in 3 weeks time I wont have to pay for it for 56 days?
If you can't afford it - don't buy it ;-)
I have an offset mortgage, so everything that goes on the credit card is reducing my mortgage balance and the interest that I'm paying on it. If you can't afford it - don't buy it ;-)
I'm effectively earning 3.5% interest on the purchase price from the purchase date to the payment date, so it makes sense to make large purchases at the start of the period rather than at the end so I get the 3.5% for a longer period.
I hadn't considered that before now, so I'm going to go and check my statements to see what the relevant dates are and start shifting large purchases to coincide.
paulrockliffe said:
I have an offset mortgage, so everything that goes on the credit card is reducing my mortgage balance and the interest that I'm paying on it.
I'm effectively earning 3.5% interest on the purchase price from the purchase date to the payment date, so it makes sense to make large purchases at the start of the period rather than at the end so I get the 3.5% for a longer period.
I hadn't considered that before now, so I'm going to go and check my statements to see what the relevant dates are and start shifting large purchases to coincide.
This.I'm effectively earning 3.5% interest on the purchase price from the purchase date to the payment date, so it makes sense to make large purchases at the start of the period rather than at the end so I get the 3.5% for a longer period.
I hadn't considered that before now, so I'm going to go and check my statements to see what the relevant dates are and start shifting large purchases to coincide.
I have an offset mortgage & an Amex Platinum cash back card, so also benefit from using it for almost everything. It paid for quite a lot of Christmas presents last year. Its tricky to tell when a large payment will come out, apart from the usual super market weekly shop.
paulrockliffe said:
I'm effectively earning 3.5% interest on the purchase price from the purchase date to the payment date, so it makes sense to make large purchases at the start of the period rather than at the end so I get the 3.5% for a longer period.
If I'm reading that correctly that would mean your mortgage payment rate is 3.5%? Would you not consider this quite high?Gassing Station | Finance | Top of Page | What's New | My Stuff