To think always clearing a credit card is not typical?

[OneNattyCrab]

I tend to pay my credit card off in full each month so I never pay interest but it’s made me wonder how common that actually is. Given how many people carry credit card balances, it feels like always clearing it might not be the norm.

AIBU?

Can you afford to pay it off when the interest free period ends? It can get to a daunting amount, I had one interest free for 6 months but got a little panicked when I saw how much it had got up to, fortunately I had savings to cover it.

I don't know anyone who doesn't clear it monthly and pay no interest now, however they are all over 40.

Most of them made the mistake of not clearing it, or were so short of money they were using it as a loan when they were a lot younger or were students when they first got a credit card and didn't handle their first experience of credit well.

This is MN. Of course everyone clears 'in full, every month'.
Bonus points to the pp at pains to point they pay theirs BEFORE it's due.
Would anyone dare to admit on this thread that they don't?
😂

I’ve been all types. Used to take it to the limit spending on clothes and holiday, then I grew up and got a consolidating loan and have been careful ever since. Before children, DH and I both had interest free cards and an offset mortgage - I even remember getting a calculator out to work out if it was better to pay for our honeymoon on credit card with a transaction fee or on debit card but losing out on interest! Since children life has been too busy to chase the 0% deals but we do have a credit card that we use for everything to rack up the air miles - that has made some holidays a lot cheaper! We ALWAYS make sure to pay that off completely each month.

I've always paid mine off in full, so I have never paid any interest.

We have friends who still rack up a few k on cards then use a bonus to pay it off. They like socialising 🤷🏻‍♀️

I clear mine monthly but a lot of people can't afford to or have sporadic income that requires waiting for a chunk of income to come in.

I do use credit card regularly though as it helps maintain good credit history (shows you can service debt), added protection in purchases over £100 and I earn John Lewis points/vouchers.

I clear mine in full each month. But I don't use it to pay for things I can't afford.

I put all my spending on CCs. I used to pay mine off monthly (cashback cards) until I realised that I'd earn more by stoozing. Now I have around £25k on 0% CCs and the cash in ISAs earning around 4% which is a nice return for being organised with promotional end dates.

However I agree with you and think that the majority have interest bearing debt on CCs, some pay in full and a tiny % stooze like me.

I never pay interest but that’s because I move my balance to a new card at the end of the interest free term. At the moment I have more in savings than I owe on my credit card but I’m earning 4% on my savings and paying 0% on my debt so there’s no point in paying it off now, I just pay the minimum each month. When this interest free period runs out in about a year I’ll clear it then.

I manage to pay the minimum every month and then can re-spend that.

It’s a tax on the poor. Those who can pay off each month get the benefits for nothing and are being subsidised by those who cannot.If most paid it off each month banks would lose out and not do it

A credit card, used wisely can be a good friend but without spending self discipline can be a terrible enemy. I don't pay my credit card off but I don't pay any interest on it. I would never make random purchases on it like, say a handbag or dress I fancy. I know from when I was younger these type of purchases once started are hard to curtail. I've just paid for a really good 2 week holiday on my interest free card. I have a direct debit for the monthly amount needed to pay it off before the interest free period runs out. We could have paid for the holiday out of our savings but I know we would never have put the money back and now we are retired it's best we keep what we have for urgent necessities like maybe a roof repair or health extras. In actual fact the holiday works out slightly cheaper on the credit card as the money I would have drawn out is still making interest in the bank. Paying by credit card is also extra security if things go wrong with flights ext. I never extend the credit beyond the interest free period and will transfer to another card when necessary for further interest free credit.

That surprised me

Clear it monthly, use it for Virgin points and free companion vouchers. We get around 10,000 points a month from our spending as well as a free companion voucher annually. It works really well.

I clear mine monthly.

The reason I keep it is for the buyer protection that comes with it.

I clear mine every month, but don't feel I need a gold star for been so unusually versus. I just feel fortunate to be financially stable enough that that is an option to me, and I'm not stook in the poor tax trap.

We put all spending on the card every month (that we are able to) and then pay it off so we get points. If there’s anything on the current account apart from cash withdrawals direct debits or any regular payment you can’t make on a card then there’s a stewards enquiry. Like others when I was young I overspent and didn’t pay it off .

I do all my spend on a credit card for the points, but clear it in full weekly. Quick way to ensure I don’t overspend and don’t pay interest.

I used to til a few larger than expected expenses! But yes I normally would.

Voting a bit confusing but clearing each month is the way. If not you get a terrible credit rating and pay more interest so defo don’t do that.

I’ve cleared mine monthly since being in my 30s

There are two big patterns around credit cards. Basically, the difference is between people who have the money and people who don't.

1. People who actively use credit cards to get benefits like miles, customer protection, ... paying in full and never paying any interest.

2. People who are used by credit cards. Using it as a preapproved loan, but maxing it out, paying a lot in interest, and sometimes paying a credit card with a credit card.

I suppose there are some people who are not paying it fully every month, but just paying it over a reasonable timeframe, but I suppose those people are often just temporarily between the groups 1 and 2, if they manage to balance their money, they get back to the group 1, otherwise it is a slide to group two.

Mine is cleared every month. I don’t spend what i don’t have, however, as i order online a lot i prefer the added protection offered so always use it. I also collect more points for vouchers etc using it.

it means my money goes in and most of it goes straight out on it but it means it’s paid off and i have no debt. I know a few people who have thousands on cards as take holidays and buy lots of stuff on credit but i know more who use it like me. Only money i owe is mortgage

I clear it every month if it means I'd pay interest. If it is 0% interest, I pay the minimum and stick the rest in a savings account for when the offer runs out.

There will be many people who are unable to pay theirs off in full, so I feel grateful that I can.