student with credit card question

jacko_32

hi, im new to the whole credit card thing and have a quick question. If i receive a statement in the middle of the month saying that a certain amount needs to be payed off on the 11th Nov, then i use my card to pay for something after i receive the statement, will this extra amount be payed on the 11th Nov aswell?
Thanks

jj

grumbler

Hi
Your statement shows the current balance, the payment date and the minimum payment due. You must make at least the minimum payment on time so that it is cleared to your CC account on or before the payment date. Any transactions after the statement date don't affect the amount of the minimum or the full payment you must make.

It is better to pay the balance in full. If you use the card only for purchases and pay full statement balance on time every month, usually you don't pay any interest. Minimum payments and cash withdrawals from a CC are a vary bad idea.

jacko_32

thanks. I see. I plan to pay balances on statements in full, don't want to be heading down evil paths. Will the bank take money from my debit account automatically on the date or do i need to do it by post/net. I've tried to find out on the net but i'm going round in circles. Banks are confusing. tar

grumbler

The best way to pay is by a Direct Debit. In this case the CC company collects the payment from you current account (the day of the collection will be shown in your statement). You just have to make sure that sufficient funds are available in your current account the day before the collection date.

To set up the DD contact your CC company and have your current account details ready (sometimes you can do this online). Ask them to set up the DD for full payments. Be extremely careful with the first DD as they could have not enough time to set it up. Only if your statements says that the payment will be collected by DD you can rely on this.

jacko_32

nice one, thanks again