Pay credit card with direct debit good or bad idea

  Tick Tock 1 15:16 24 Dec 2005

I pay in full each month so direct debit seems good
idea unless any fraud transactions appear on my
statement what do you think.

  johnllew 15:30 24 Dec 2005

It's probably the best way to pay as you won't forget and you get the maximum interest free period with the payment being made on the last possible date. Always check your credit card statements every month; there may not be fraud but mistakes are occasionally made.

  Diodorus Siculus 15:34 24 Dec 2005

Pay it via DD - if there are any problems, your CC company should be ready to listen and refund anything that is suspect. There is little chance of fraud.

  [email protected] 15:35 24 Dec 2005

dun this for years pay credit card on a numbered day each month by DD.
Only snag I find is that you seem to lose credit rating because you have no credit history by paying off all debts regularly. In polite circles having no debt at all does not help with credit rating when you may want a mortgage or loan for a car per se
The joy of being a Santa Claus All the Best to you all

  Europa 16:21 24 Dec 2005

I personally do not like DD, as you don't seem to have full control on what you want to pay every months, sometimes you want to pay part of the balance, for example at those times when you spent more money (christmas, big purchase, big yearly bills etc...)
I pay my credit card on my bank website, I set up a payment for all my bills and credit cards, I pay from my bank account straight into the credit card company bank account, as long as I pay 4 to 5 days prior to the date due, it's fine. But I decide every months of how much I want to pay, and check my statements and transactions online at least twice a months.

  Stuartli 16:56 24 Dec 2005

>>Only snag I find is that you seem to lose credit rating because you have no credit history by paying off all debts regularly>>

But you ARE paying off all your debts regularly by this method (at least in the case of your credit card).

  kev d 18:00 24 Dec 2005

Kellysbouncas is correct. Credit Rating History is based on managing debt i.e. no missed payments rather than having no debt.

  Stuartli 19:39 24 Dec 2005

That makes no sense to me.

If you pay off a credit card account regularly each month then you are not missing payments and you only have a no debt status once each payment is made.

If you use a credit card to make purchases then you are in debt until the sum involved is paid off, whether in a lump sum or in instalments.

  Tick Tock 1 15:23 26 Dec 2005

Thanks everyone i think DD is the best for me.

  pavvi 07:44 28 Dec 2005

does help your credit history, it also means people are more likely to lend to you or give you a mobile phone on contract if you pay by dd....

  Forum Editor 09:51 28 Dec 2005

is not the fact that you may have no debt, but that you are capable of acting responsibly by managing your debt - i.e. by consistently making regular payments. They don't care if you owe £100,000 to card providers, what they want to see is no missed payments. The fact that you might pay the full amount or only the minimum payment is of no concern to them, as long as you do pay.

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