credit card 56 days interest free

dzug1

STANTHEGANDER wrote: »

yes thats exactly what im doing paying off the previous months balance and spending , albeit at the same time , this isnt odd behaviour is it?

It's doing it in bits that is odd. Most people just make the one monthly payment. Those that don't (to judge from posts on here)frequently screw up/misunderstand etc and end up paying charges they hadn't expected.

YorkshireBoy

STANTHEGANDER wrote: »

...the fraud side of things is better too because if your balance is full up nobody can use your credit because there is no available credit left on your card!!

I wouldn't bank on that! You'll have a 'shadow limit'...an amount by which they'll let you (or the fraudster!) go over your credit limit before starting to decline transactions.

STANTHEGANDER

i keep a log on a dailly basis as to how much i transfered in and used !! so i wont go over the limit because its a dailly charge

Xbigman

Wow, I come back to this thread after a day and what looked like a simple question/answer is rumbling on.

Just to go back, I don't stand corrected as what I said was correct. You need to pay off the whole balance to avoid interest. If you pay it off in dribs and drabs thats fine, but it has to equal the whole balance outstanding at months end.

As to what you are doing, its pretty pointless. If you are paying in money 'as used' then your running balance during the month is never anywhere near £2500, its nearer £0. Someone could put through a fraudulent purchase and get away with it.
Let me give you an actual example. I had a credit card with a £2k limit. I took out a loan for a new computer but I put the purchase (£1960ish) on my credit card and when the loan cleared into my bank I made a cash payment onto the card. I then spent £500 on the card in the same month. My statement said Credit limit £2000, new transactions £2460, payments recieved £2k, balance £460. I put through more transactions than my credit limit because my balance never went over my credit limit.
Because of this you are not protecting yourself from fraud, just making your life complicated.

Your assertion that you are getting 56 days interest free is also incorrect. If you pay onto the card as you use it you are infact getting 0 days interest free because the balance was on there for 0 days.

You are actually turning a credit card into a debit card the hard way. The only benefit is Section 75 protection, which I've never needed in over 20 years of using a credit card and I personally think its over rated.
I'd just get a debit card and save yourself some grief.




X

STANTHEGANDER

@xbigman
the whole point of this is i already have a balance of £2500 and im using the free cash ie the minimum payment i would have been paying plus the interest i would have been paying to reduce the debt faster!! i think your very confused as to what im trying to achieve

Milarky

STANTHEGANDER wrote: »

@xbigman
the whole point of this is i already have a balance of £2500 and im using the free cash ie the minimum payment i would have been paying plus the interest i would have been paying to reduce the debt faster!! i think your very confused as to what im trying to achieve

How does the minimum payment become 'free cash' all of a sudden?

I agree with Xbigman: In reality you are not reducing the debt because you aren't even carrying a debt strictly speaking - simply a revolving balance - which any fool can do with a credit card - it's called a whole balance direct debit and does not require you to do anything more than stay within your credit limit. The only time when it makes sense or becomes necessary to 'upfront' with the payment is when you are actually spending more than half your credit limit every month - because then you'd approach limit before the monthly payment towards the end of the month.

NekoZombie

I have to say Stan - I am struggling to follow your logic. As long as you're happy, I say carry on and leave the rest of us to carry on using credit cards as normal. Just make sure you don't come back complaining when it (inevitably) all unravels!

STANTHEGANDER

the minimum repayment becomes free cash if your say running a business and using the amount up on your card anyway !! obviously your not going to spend if you cant actually replace whatever you spend back to your card!! the minimum payment that you would have had to pay if you had only been paying back the minimum payment to your card then becomes "free cash" that you can then use to reduce your debt , the same applies to the interest that you would have been paying!!

STANTHEGANDER

im only trying to help other folk who can only make their minimum payment!! if your flush enough to pay back the whole balance then thats fine this doesnt apply to you