Minimum Payments Showing On Credit File

loveandlight

Does anyone know if you set up a standing order to pay extra off your credit card debt when the card company have a direct debit in place to collect the minimum payments, will it still show on your credit file that you are only making the minimum payments?

thecableguy12

yes it will unless you get the payment to the account on the same day as the direct debit credits

chattychappy

Really?

I've certainly made two separate payments to a CC - one for the minimum and an extra one a few days later for more than the minimum and not had a minimum payment marker.

Neither were by DD, but I would be surprised if this makes a difference. Surely all the CC does is report the status on it's reporting date and indicated if only the minimum was received that month (ie in total)??

YorkshireBoy

I concur with Chatty.

In my experience (with a good few cards!) so long as more than the minimum payment is received between the statement date and it's respective payment due date, then no minimum payment marker is reported to the CRAs.

Indeed, it's a 'deflection' technique employed by many stoozers and rate tarts alike.

And, for the OP's benefit, I also pay minimums by DD.

Cell

chattychappy wrote: »

Really?

I've certainly made two separate payments to a CC - one for the minimum and an extra one a few days later for more than the minimum and not had a minimum payment marker.

Neither were by DD, but I would be surprised if this makes a difference. Surely all the CC does is report the status on it's reporting date and indicated if only the minimum was received that month (ie in total)??

In my experience this is correct.

The only problem would be if you have a card where additional payments are deducted from your direct debit to still make up the minimum. I have experienced this with MBNA in the past where I made a payment early in the month and when they took my direct debit it was the original minimum less the payment I'd made.

To avoid any risk of this just pay within a couple of days of your direct debit being taken so that they can't adjust it.

YorkshireBoy

Cell wrote: »

I have experienced this with MBNA in the past where I made a payment early in the month and when they took my direct debit it was the original minimum less the payment I'd made.

That's very odd, because in my experience, and going by the countless posts on this board on the subject, the MBNA DD amount is 'set in stone' once the statement has been produced.

I can't count the number of times I've had to spend £25 on something just to use up the positive balance at the end of a 0% promotion on my Virgin cards.

Cell

Yes, I've read those points, and double checked my MBNA online account to make sure. For three months last year it happened like that.

I believe somewhere in the blurb they sent out with the 'increase in minimum payment' stuff last month they do say that additional payments will be in addition to the minimum which will be collected regardless.

I am on the old style minimum payments of interest plus £5 while many were on the interest plus 1% which everyone will be on from April, so that may have something to do with it.

Percy1983

How much harm will minimum payment markers do? just been letting my 0% cards trickle out while saving elsewhere?

YorkshireBoy

Percy1983 wrote: »

How much harm will minimum payment markers do?

I don't think we'll ever know for sure, but for the sake of £1 per month why risk finding out?

However, if I was rate tarting real debt (not stoozing as you and I are), and especially if there wasn't a 'special promotion' marker on the account, then I most certainly would be paying just over the minimum each month.

Percy1983

Well I am rate tarting real debt but got the last onto 0% deals and can clear before they finish, just been earning some interest in the meantime, so fell into stoozing I suppose.

Eitherway the damage is already done been like that for months.