Pay off card in full every month

  • Tath's Avatar
    Hi, is there any way to set up for my credit card to be paid off in full automatically every month? I set the direct debit to "last statement", but obviously this only paid off part of it.The only other options are "minimum payment" and "custom amount". I could put in a custom amount equal to my credit rating, but I am wary that my credit card will end up with a positive balance.
  • 6 Replies

  • Verified Answer

    MichelleC's Avatar
    Employee
    Verified Answer
    Hi @Tath,

    There is no option to pay the full balance each month automatically, you can choose 'last statement balance' which will pay off your statement each month thus ensuring you don’t' incur any interest charges. Although you are quite right that this may leave a balance on your card as that is part of the next statement and thus would then be paid the next month.

    If you want to clear the entire balance each month you can log in to your online banking or the mobile app after your direct debit has come off and make a payment for the balance that still remains. Unfortunately there's no way to do this automatically, however as mentioned paying the last statement balance each month ensures you won't be charged interest for these purchases.

    I hope that helps!
  • Tath's Avatar
    Thank you for your answer, much appreciated. I shall install the app. I think having an outstanding balance every month will negatively affect my credit rating, so will pay it off manually.
  • chaddman30's Avatar
    Supervisor
    It wouldn't affect your credit rating because each lender has their own criteria when it comes to applications; they'd look more favourably on your previous credit history. If you're paying your statement in full after it's been generated and before the payment due date then that'll prove you can afford your commitments and look better.
  • Harry2553's Avatar
    I can do this with my Santander Account so why doesn't tesco set this up to make things easy, and to help avoid late charges when customers cannot access account?
  • NickJ's Avatar
    Employee
    Hi , I’m sorry we don’t provide the facility to clear the entire balance at the time you’re paying and any inconvenience this has caused you. The last statement balance option will allow you to clear the balance that was on your account when your statement was produced and would prevent a late fee from being charged, as would any other Direct Debit option.
    I’ll certainly log this as feedback that you can’t clear the up to date balance through your online banking or mobile app.
  • chaddman30's Avatar
    Supervisor
    I'm not sure when you tend to pay your credit card bill via Direct Debit OP but another option is to send a Faster Payment from your bank for the full statement balance in addition to your Direct Debit?