Credit Card Statement / Interest-Free

T-G-C · 12 September 2017 at 11:47AM

Hello all,

My Vanquis Origin card statement was generated on 2nd September and was for the amount of £230.

They asked for £10.00 minimum payment and I paid £60 on the day which is x6 what they asked for.

Since then, I've spent the £60 that I paid into the card back and have reached the credit limit and I am from 96p away from £250.

As the statement balance for August was set at £230, and I've paid £60 already, despite spending it on the card again, will this count towards 'paying off' the statement balance or will Vanquis not count it due to it being spent again?

Also, in order to maintain the interest-free on purchases, does the whole balance of the card, regardless of what the statement balance was, need to be paid in full by the payment due date or can I pay the £230 (statement balance) by the due date instead of the full £250 and I'll still qualify for no interest charges? After the £230 statement balance is paid up, I'll still have £19 left on the card but that's from this months spending and not last months - so will this £19 hinder me from being interest-free or is it fine because I've paid the statement balance from 2nd Sept?

Thanks in advance!

[Deleted User] · 12 September 2017 at 11:50AM

Unless you have a promotional offer, you need to clear the full statement balance by the due date shown on that statement for you to avoid paying interest.

If you're carrying a balance, you need to get away from your limit as soon as possible, or the interest will take you over.

You should then stay away from the limit in any case, to avoid looking over stretched.

StopIt · 12 September 2017 at 11:57AM

T-G-C wrote: »

Hello all,

My Vanquis Origin card statement was generated on 2nd September and was for the amount of £230.

They asked for £10.00 minimum payment and I paid £60 on the day which is x6 what they asked for.

Since then, I've spent the £60 that I paid into the card back and have reached the credit limit and I am from 96p away from £250.

As the statement balance for August was set at £230, and I've paid £60 already, despite spending it on the card again, will this count towards 'paying off' the statement balance or will Vanquis not count it due to it being spent again?

Also, in order to maintain the interest-free on purchases, does the whole balance of the card, regardless of what the statement balance was, need to be paid in full by the payment due date or can I pay the £230 (statement balance) by the due date instead of the full £250 and I'll still qualify for no interest charges? After the £230 statement balance is paid up, I'll still have £19 left on the card but that's from this months spending and not last months - so will this £19 hinder me from being interest-free or is it fine because I've paid the statement balance from 2nd Sept?

Thanks in advance!

You must pay the statement balance to avoid interest. So £230.

Any spending after that needs to be paid at the next statement.

You could spend £230 every month on the card, pay it off and spend a new £230 and pay no interest ever, so long as you pay the balance at each statement.

It isn't advisable to be near your limit though. If you go over, you're liable to be charged.

Edit: Any Interest Free Promotions will only apply to the purchases that are allowed for that.

If you spend again after this has expired, it'll attract interest if you don't clear that balance. The problem is, that you'll need to read the cards T&CS.

Some providers pay off interest bearing balances first, some pay the earliest purchase first. if it's the latter, you'll need to clear the card in full, otherwise you'll pay interest on non promotional spending.

T-G-C · 12 September 2017 at 12:43PM

StopIt wrote: »

You must pay the statement balance to avoid interest. So £230.

Any spending after that needs to be paid at the next statement.

You could spend £230 every month on the card, pay it off and spend a new £230 and pay no interest ever, so long as you pay the balance at each statement.

It isn't advisable to be near your limit though. If you go over, you're liable to be charged.

Edit: Any Interest Free Promotions will only apply to the purchases that are allowed for that.

If you spend again after this has expired, it'll attract interest if you don't clear that balance. The problem is, that you'll need to read the cards T&CS.

Some providers pay off interest bearing balances first, some pay the earliest purchase first. if it's the latter, you'll need to clear the card in full, otherwise you'll pay interest on non promotional spending.

I only received the card in August, so this is my first ever card statement - no dragging balance.

To put it simply, as long as I pay in full and on time, what the statement balance is from last month, I'll still qualify for interest-free on the card regardless of any credit I've spent this month, as they will be due on next month's statement rather than having to pay them now? Am I correct on that?

HogMan · 12 September 2017 at 12:47PM

Yes correct

StopIt · 12 September 2017 at 1:22PM

T-G-C wrote: »

I only received the card in August, so this is my first ever card statement - no dragging balance.

To put it simply, as long as I pay in full and on time, what the statement balance is from last month, I'll still qualify for interest-free on the card regardless of any credit I've spent this month, as they will be due on next month's statement rather than having to pay them now? Am I correct on that?

Correct.

You can spend £200 or so until the end of time as long as you pay the £200 or so back at each statement date. You'll only pay interest if you do not pay the statement balance in full before the statement payment date.

T-G-C · 12 September 2017 at 4:41PM

StopIt wrote: »

Correct.

You can spend £200 or so until the end of time as long as you pay the £200 or so back at each statement date. You'll only pay interest if you do not pay the statement balance in full before the statement payment date.

Thanks for the confirmation. I have one last question....

I paid a £60 payment to credit my Vanquis account on the 2nd September - this obviously increased my credit allowance again but I've since spent £60+ on my credit balance again and I'm back to £250 maxed out.

Despite spending £60 of my balance this month after it increased from paying the £60, does that £60 payment that I made still count towards paying off the £230 statement balance or has it been voided now that the credit has increased again by more than £60?

I plan on making a payment of £220 which only leaves £10 of the statement balance generated left (not this months balance so far as that comes to £250 in total) but I was wondering if that previous £60 would still count and therefore I would be more than paid the statement balance by paying another £220 on top of the previous £60 payment.

I hope I'm making sense!

PeacefulWaters · 12 September 2017 at 4:59PM

Just pay the statemented amount in full every month.

Don't have cash advances.

Don't fanny around nudging your credit limit. Keep well away from it.

Repeat.

molerat · 12 September 2017 at 5:30PM

T-G-C wrote: »

Thanks for the confirmation. I have one last question....

I paid a £60 payment to credit my Vanquis account on the 2nd September - this obviously increased my credit allowance again but I've since spent £60+ on my credit balance again and I'm back to £250 maxed out.

Despite spending £60 of my balance this month after it increased from paying the £60, does that £60 payment that I made still count towards paying off the £230 statement balance or has it been voided now that the credit has increased again by more than £60?

I plan on making a payment of £220 which only leaves £10 of the statement balance generated left (not this months balance so far as that comes to £250 in total) but I was wondering if that previous £60 would still count and therefore I would be more than paid the statement balance by paying another £220 on top of the previous £60 payment.

I hope I'm making sense!

You need to pay the statement balance amount between the statement date and the due date. This can be paid in a single payment or by a small amount each day if you wish as long as it is paid by that date. Be aware that any amount paid over that statement balance will not count towards next month's payment requirement even though it pays off purchases that will appear on that statement.

SuperAllyB · 12 September 2017 at 10:44PM

To pay the £230 statement balance in full you only need to pay a further £170 in addition to the £60 already paid.

T-G-C · 12 September 2017 at 11:46PM

According to my credit agreement:

"If you pay off your first statement balance in full you could get up to 28 days' interest-free credit on purchase transactions.

You can get up to 56 days' interest-free credit on purchase transactions provided that you pay off two or more consecutive current statement balances in full by the repayment due dates."

This is my first statement issued as I only applied + got the card in early August 17.

Does this essentially mean that I'll now be charged interest for all my purchases past the 28-day mark? I thought as long as my first statement / statement balance since getting the card was paid in full, I didn't have to pay a penny in interest.

Am I getting this confused for something else? I started using the card for the first time ever on 11th August, my statement was issued on 2nd September and payment is due on 28th September, so that works out much more than 28 days in total - will I now be charged interest regardless of paying the statement balance in full for the 28th due date?

It is so confusing, their terms say one thing and industry-wide advice says another. if someone could shed some light on the above statement that would be fantastic. This is for the Vanquis Origin credit card if you want to find the terms - I assume different Vanquis cards work different from each other.

Credit Card Statement / Interest-Free

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