American Express Cashback Card

j_white_2

Hi folks,

Can anybody help me with the following please:

• Have signed up for Amex cashback card
• Direct debit set up- full amount to be taken on the 10th of each month

I know that I have effectively turned this into a debit card but I am just a little concerned that I will have to pay some interest this month.

I made my first purchase today but money will now not be taken until 10th Feb (1st direct debit date). Does this mean that I will pay any interest for purchases made this month?

Will it make any difference if I pay off individual amounts as and when I spend them in addition to having the direct debit? The guy on the phone told me not to do this as the direct debit doesn't take into account these payments.

Apologies if this sounds basic but would appreciate some clarification

Thanks in advance

Jenny

dylanuk

All credit cards have an 'interest free period' each month for purchases, which allows you to spend on the credit card and then pay off the statement balance in full by a set date and NOT be charged any interest.

Normally this period is around 56 days, which is 30/31 days of the statement month, plus an additional 25 days after the end of the statement month. For example, if you bought something on the last day of your statement month, you'd only have 25 days interest free credit before you have to pay it off. But if you bought something on the first day then you would have 56 days of interest free credit.

The person you spoke to at AmEx is saying not to, because the direct debit will take the full amount - so if you make additional payments you'll end up with a negative balance and will pay off more than you've spent.

Just remember that only purchases are included in the interest free period, so avoid withdrawing cash, buying foreign currency, gambling, etc..!

j_white_2

Thanks Dylan.

That clarifies it perfectly. You're a star! xx

td_007

j_white wrote: »

Hi folks,

Can anybody help me with the following please:

• Have signed up for Amex cashback card
• Direct debit set up- full amount to be taken on the 10th of each month

Watch out - the direct debit date is variable ie it will not be always be the 10th - your statement will show the payment due date and Amex take the payment a week in advance of the payment due date - your statement will tell you when. So make sure you have money in your a/c before the dd date.

j_white wrote: »

I know that I have effectively turned this into a debit card but I am just a little concerned that I will have to pay some interest this month.

I made my first purchase today but money will now not be taken until 10th Feb (1st direct debit date). Does this mean that I will pay any interest for purchases made this month?

No.

j_white wrote: »

Will it make any difference if I pay off individual amounts as and when I spend them in addition to having the direct debit? The guy on the phone told me not to do this as the direct debit doesn't take into account these payments.

Once dd is setup you do not have to make any additional payments. Any purchases you make after the statement is produced will be reflected in the next month's statement....just make sure you have enough money in your a/c to cover the dd on the date mentioned in the Amex statement.