clearing credit card in full each month / partial payments?

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clearing credit card in full each month / partial payments?

Postby planteria » Thu May 18, 2017 10:47 am

in terms of a credit file showing consistent 'borrow & repay' and therefore helping to build up a positive credit history, is it important to clear a full monthly Amex balance by DD, or would it be just as positive to spend, leave the DD for the full balance in place, but also make payments to the account during the month? -the latter would suit me fine accounting-wise. :think:

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Re: clearing credit card in full each month / partial payments?

Postby parchedpeas » Thu May 18, 2017 11:36 am

I'm not sure it matters, the credit scoring seems to just report paid or unpaids.

I often pay off a credit card in small chunks, especially if I want Section 75 protection and I'm close the a limit. Just pay a wodge off the card, then buy the said item on the card and you're covered.
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Re: clearing credit card in full each month / partial payments?

Postby planteria » Thu May 18, 2017 11:52 am

yes, im with you re reducing your balance to enable further spending.. i would do that for cashback too.. but with the card concerned i'm nowhere near my limit nowadays anyway.
the theory is that part-payments reduce the full amount outstanding, and so could reduce the way that the account use appears to potential lenders.
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Re: clearing credit card in full each month / partial payments?

Postby parchedpeas » Thu May 18, 2017 12:38 pm

I think they only report once a month though, so potential lenders looking at your record wouldn't see the balance go down in chunks, they would just see where it was at on a set date each month.

This is my understanding of it, although I'm only going on my own knowledge here.
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Re: clearing credit card in full each month / partial payments?

Postby planteria » Fri May 19, 2017 9:35 am

yes, with you, but the monthly statement would be lower if i make payments to my Amex account from my company, for expenses, as they are incurred. at the moment i make those payments to my current account.
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Re: clearing credit card in full each month / partial payments?

Postby milo55 » Fri May 19, 2017 7:54 pm

sorry not with you on this - my understanding of the credit history /file , is that in terms of building a good credit history/score ,potential lenders like to see regular payments once a month with a balance being carried over(so they see the potential to make money out of you )- but not too big a balance !!! , and not too many payments each month - as it would seem you are finding it hard to pay it off. Anyway this is my experience of how it seems to work

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Re: clearing credit card in full each month / partial payments?

Postby planteria » Sat May 20, 2017 8:18 am

on that basis milo, i am better to stick to my existing arrangements.
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Re: clearing credit card in full each month / partial payments?

Postby Chadwick » Mon May 22, 2017 10:47 am

milo55 wrote:sorry not with you on this - my understanding of the credit history /file , is that in terms of building a good credit history/score ,potential lenders like to see regular payments once a month with a balance being carried over(so they see the potential to make money out of you )- but not too big a balance !!! , and not too many payments each month - as it would seem you are finding it hard to pay it off. Anyway this is my experience of how it seems to work


Is it important to carry a balance over? I thought best practice with credit cards was to clear them asap - ideally straightaway each month - to avoid charges.

My credit rating must be buggered if I'm supposed to not pay the statement in full - and yet Capital One keep upping my limit...
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Re: clearing credit card in full each month / partial payments?

Postby planteria » Mon May 22, 2017 11:11 am

you're at crossed purposes i believe
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Re: clearing credit card in full each month / partial payments?

Postby Bruce » Tue May 23, 2017 5:56 am

milo55 wrote:sorry not with you on this - my understanding of the credit history /file , is that in terms of building a good credit history/score ,potential lenders like to see regular payments once a month with a balance being carried over(so they see the potential to make money out of you )- but not too big a balance !!! , and not too many payments each month - as it would seem you are finding it hard to pay it off. Anyway this is my experience of how it seems to work

Except for internal applications with the same bank, a credit file doesn't contain too much information. Experian and Call Credit both show just the total amount of repayments made within the month. There is no count for the number of payments made.

I pay my balance off in full every month and never had any issues obtaining any other credit, including the best offers. I think people overthink credit ratings these days. Just make sure you keep up to date with payments and you'll be absolutely fine.

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