GDPR Cookie Consent by SimpleServe Privacy Script Credit Card Accounts – Best Management Practice - AAD Consumer Forum

Announcement

Collapse
No announcement yet.

Credit Card Accounts – Best Management Practice

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Credit Card Accounts – Best Management Practice

    I thought I would start this thread for the benefit of those people who have reached the stage in their rehabilitation where they are able to obtain a credit card, so that they can attempt to rebuild their credit rating for the future.

    I was recently able to qualify for two credit cards, having had one for over a year already. The question is, what is the best way to manage credit card accounts so that they gain the user the greatest possible benefit?

    Running up a balance is obviously NOT the way to manage them, that goes without saying. Especially on a Vanquis card with its insanely high interest rate. However, I have heard it said that paying off the balance in full every month is also not the optimum way to manage these accounts. I have to admit that is what I do – every time without exception.

    This is not my area of expertise. For the benefit of those who don't know me, I used to have a decent reputation on debt and consumer forums in the old days, but my specialities were writing letters for those threatened with court, and finding little-known alternative solutions for those with damaged credit files who were unable to access mainstream products. I never got involved with credit file rehabilitation.

    For those who are experts in this area – what would you advise as the optimum way to manage one or more credit card accounts?

    SH

  • #2
    Re: Credit Card Accounts – Best Management Practice

    What you do, is pay the minimum amount due on the day of your statement, then pay the rest in full the day after. This shows that your overpaying what you need to, and looks good on your credit file.
    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

    Comment


    • #3
      Re: Credit Card Accounts – Best Management Practice

      Originally posted by SXGuy View Post
      What you do, is pay the minimum amount due on the day of your statement, then pay the rest in full the day after. This shows that your overpaying what you need to, and looks good on your credit file.
      Almost mate.....

      To best utilise the CRA data feeds and get an extremely high internal score you must pay more than the minimum. To explain, your credit file is usually updated after your monthly payment date so it reflects the payment made that month. If you have a £2k limit and spend a few hundred each month but pay it off in full then each time the card company reports the feed to the CRA it suggests you have a £2k limit with a £0 balance (as you've paid in full) and had the same the month before, and before that etc etc - so in theory it suggests the account is dormant / unused.

      So to combat this you set a DD up to pay the minimum each month, then look at your credit file and check the 'date last updated' against that particular account and then literally pay the balance after that date (via online banking / however you fancy really). This will then update on the following monthly feed as settled and as paying the minimum plus extra, it basically boosts your score with the CRA's as it suggests you pay the minimum on time then settle the rest of the balance at a later date with a second and additional payment. Your credit file will show a small carry-forward balance which, in the account history, will record that it was paid a few days after statement due date - so the searching company will know you're a good risk as you manage your accounts extremely well.

      That's the only way to boost your internal score with a lender and/or credit agencies.....
      I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

      If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

      Comment


      • #4
        Re: Credit Card Accounts – Best Management Practice

        Originally posted by Never-In-Doubt View Post


        So to combat this you set a DD up to pay the minimum each month, then look at your credit file and check the 'date last updated' against that particular account and then literally pay the balance after that date (via online banking / however you fancy really).

        For those of us who don't check our credit file for the sake of starting the cauldron up () - i take it what i have been doing (dd set to minimum and paying a 2-3 days after is ok, or do they all vary?


        (sorry if its a bit pedantic, but i am a keen student )
        When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.



        I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

        If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

        Comment


        • #5
          Re: Credit Card Accounts – Best Management Practice

          What does YOUR credit file read? £0 balance lol if so then start paying the rest a few days later. Ideal time is a week after payment due date as the feed update occurs within that period.
          I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

          If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

          Comment


          • #6
            Re: Credit Card Accounts – Best Management Practice

            Originally posted by Never-In-Doubt View Post
            What does YOUR credit file read?

            Haven't been near it for years mate. Printed it out just before going UE


            Originally posted by Never-In-Doubt View Post
            Ideal time is a week after payment due date as the feed update occurs within that period.
            noted, thanks mucka.
            When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.



            I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

            If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

            Comment


            • #7
              Re: Credit Card Accounts – Best Management Practice

              I managed to get a Barclaycard with a 0% offer for 18 months.

              I used the card to put some things I normally pay by direct debit such as the house insurance. I let the minimum payment go out by direct debit each month and then pay an additional amount at some point throughout the month. I also still have my Aqua card which gives me 0.5% cash back so I used that for my day to day expenditure and the full balance goes out via direct debit.

              Does it matter that the Barclaycard is on 0% interest or will it still make me look like a good boy?

              My final default comes off in February and my fixed rate mortgage is up in March so I am trying to do all I can to make sure I have a good change of getting a better rate on my mortgage.

              Cheers,
              Beefy

              Comment


              • #8
                Re: Credit Card Accounts – Best Management Practice

                You're playing the game very well - keep it up
                I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

                If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

                Comment


                • #9
                  Re: Credit Card Accounts – Best Management Practice

                  Originally posted by Never-In-Doubt View Post
                  You're playing the game very well - keep it up
                  That's good to hear, thank you

                  Comment

                  Working...
                  X