Credit Cards - New Minimum Payments Procedures?

Hazzo

I read somewhere a few months ago that Credit Card companies now calculate their monthly minimum payments in a new way, whereby we are now required to pay their usual minimum monthly fixed percentage of the statement balance plus the amount of interest plus any default charges. If it is indeed correct, does anyone know where I can find any official information about this? I ask because on my latest statement from Vanquis, the minimum payment required is considerably lower than the estimated interest, which does not seem to make sense to me. I have always found Vanquis to be very approachable, but I thought that I would ask before I call them for a chat. Thank you all, as always.

YorkshireBoy

The new minimum payment calculation ensures you repay the interest already accrued (plus 1% of the balance).

Your estimated interest figure is an estimate of what interest will be posted to your account in 28 days time but with various assumptions factored in, ie you make only the minimum payment on the due date and don't make anymore purchases.

The large difference could be due to a high interest rate, large cash balance, etc.

Without further details about your account it's impossible to speculate further.

Fruit_and_Nut_Case

Hazzo wrote: »

I read somewhere a few months ago that Credit Card companies now calculate their monthly minimum payments in a new way, whereby we are now required to pay their usual minimum monthly fixed percentage of the statement balance plus the amount of interest plus any default charges. If it is indeed correct, does anyone know where I can find any official information about this? I ask because on my latest statement from Vanquis, the minimum payment required is considerably lower than the estimated interest, which does not seem to make sense to me. I have always found Vanquis to be very approachable, but I thought that I would ask before I call them for a chat. Thank you all, as always.

In theory this new system only applies to new accounts. Having said that, many CC providers seem to be applying it retrospectively to older accounts.