Credit card duffer

savetilibleed

I have an HSBC credit card that I use if they threaten to take it away through lack of use. Whenever I do use it there is a charge of 79p, some sort of insurance, at 79p/£100 balance.

I bank with LTSB and had occasion to phone their helpline with a problem over the eSavings account (which they solved). The operator noticed I'd made a online payment with my debit card a month ago or so. Not a rare occurrance! She pointed out a 60%? increase in Debit card fraud in recent times and I ought to consider using a credit card for online use for the fraud protection and the like it gives. I told her I have an HSBC credit card I use occasionally, but she though it would be better if I had a LTSB credit card (well she would wouldn't she) :rolleyes:.

I said how come there is more debit card fraud than credit card fraud? There isn't, there is just more protection! I asked do they charge an insurance to use the card. No.

Question: On Martin's pages on credit cards (the cashback ones anyway) he recommends setting up a DD to pay the card of in full. Does the DD only pay out when the bill is usually generated, or does it pay out when there is any credit at any time on the card, effectively making it a debit card??

p.s. I have never paid interest on a credit card due to late payment and I don't currently have an earned income.

Thanks

Tweetinat

To answer the question, a DD will only claim after your bill has been printed and then it's usually approx. 26-31 days later. So if you spend on your card in July and your statement is printed on 1st August, the DD will claim for ALL this spend sometime between 26 - 31st August.

The 79p/£100 balance that you pay on your HSBC credit card sounds like payment protection insurance. Given that you don't have any earned income, then this is totally unnecessary. You should contact HSBC and request that this is removed from your card as you will not be able to claim from it.

savetilibleed

Thanks very much - clarified!

Umm something on my preamble - if I were to take a LTSB credit card, would it appear as one of my online accounts? If so, would I be able to transfer funds to the credit card to pay off the balance at the time, or would that count as a chargeable balance transfer?

Tweetinat

I don't have an LTSB credit card or current account, so don't know if it will appear on your online banking with them. However, I do know that at any time you can make a payment by bank transfer from your current account to your credit card to clear/reduce the balance. This does not count as a 'balance transfer' (that's when it's the other way round - you get money from your credit card and use to pay another one). LTSB may have limits on the number of payments you can make to a card in any month, but you'd have to read the T&C for that.

will-in-estoril

savetilibleed wrote: »

I have an HSBC credit card that I use if they threaten to take it away through lack of use. Whenever I do use it there is a charge of 79p, some sort of insurance, at 79p/£100 balance.

It sounds like you have payment protection insurance. I have never bothered with it.

If you pay off your balance in full every month I would opt for either a cashback card or a reward card. There are articles on the main site.

If you set up a direct debit for the full amount it will come out on your 'due date' which is a set number of days after your statement is produced.

http://www.moneysavingexpert.com/cards/best-credit-card-rewards

CannyJock

savetilibleed wrote: »

Thanks very much - clarified!

Umm something on my preamble - if I were to take a LTSB credit card, would it appear as one of my online accounts? If so, would I be able to transfer funds to the credit card to pay off the balance at the time, or would that count as a chargeable balance transfer?

Yes, at the bottom section:


Current accounts & Savings

Credit cards


You can setup a payment on your current account to pay the credit card - using your card number as the reference. But not a direct "pay card" option.

The Duo card gives airmiles, but you need to spend a fair amount to get anything worthwhile. I trade my Airmiles for cases of wine.

There's no limit on the number of payments - the easiest and safest option is to set up a direct debit to clear the balance in full.

savetilibleed

savetilibleed wrote: »

Question: On Martin's pages on credit cards (the cashback ones anyway) he recommends setting up a DD to pay the card of in full. Does the DD only pay out when the bill is usually generated, or does it pay out when there is any credit at any time on the card, effectively making it a debit card?

If I set up a DD to pay off the card credit in full, how do I do it and how do I set it to pay at the right date? I looked on my LTSB online current account and I have a list of DDs, but there is no facility to set one up. Does it have to be set up with the DD company (in this case HSBC)?

Although I rarely use the card I note the statement date varies between the 23rd and 28th of the month, with most being 26th. Is this normal?

System

savetilibleed wrote: »

If I set up a DD to pay off the card credit in full, how do I do it and how do I set it to pay at the right date? I looked on my LTSB online current account and I have a list of DDs, but there is no facility to set one up. Does it have to be set up with the DD company (in this case HSBC)?

Although I rarely use the card I note the statement date varies between the 23rd and 28th of the month, with most being 26th. Is this normal?

Direct Debits are set up by the company that receives the funds - the 'originator'.

Some companies will give you a choice of payment dates, either from a fixed list or a free choice.

Regards
UNDERGROUND