Direct Debity Reducing Credit Limit

porkedpie

Hi,

I am leaving on a year travelling soon so have just got myself a Halifax Clarity card, and set up a direct debit for the full amount each month.

However, the direct debit isn't taken for a whole month after the statement. This means that I can effectively only use it for half my credit limit each month.

a) Is this correct?
b) Can I ask for the direct debit to be taken earlier?
c) If I manually pay it off will they still debit the statement amount by DD - possibly resulting in me being in credit?

Many thanks for your help

Marco_Panettone

Not sure about a and b, but the answer to c is yes.

I have a DD set up for the minimum payment with Halifax and they take that amount even if I've manually paid it off earlier, putting the account into credit. This shouldn't be a problem though, and can be refunded easily. Otherwise, if you continue to spend on the card your limit will effectively be higher (original limit + credited amount).

porkedpie

I thought the rules prohibit you from being in credit so they might not like it...

YorkshireBoy

porkedpie wrote: »

I thought the rules prohibit you from being in credit so they might not like it...

Credit balances created by a direct debit payment are exempt from clause 11.7

Halifax_T&Cs wrote:

11.7 You must not make payments or transfer funds from another credit or store card to your account that would leave a credit balance on your account. We may return any funds that exceed the balance owing on your account to the account from which the money has been sent.

http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/terms/

I've emboldened the operative word.

The answers to questions (a) and (b) are yes and no respectively.

Brian64

You could change DD to take the min payment each month and pay the rest of the balance manually as soon as your statement is produced

porkedpie

OK, so given that I will be abroad for a while, if I am getting near my limit, I should just pay some into the account and not worry too much about the DD taking me into credit.

Additionally, they have given me a limit of £500. What do you think my chances are of getting an increase? My income is essentially 0 since I am a student but I have enough cash/interest free overdraft in the account my DD is coming from to cover me for the time I'm away. I just want a cheap way to get at it abroad

Finally, my online account lists it at a "Standard Mastercard" not a clarity card. Is this normal. The card itself looks like the design on the Halifax Plus, rather than the clarity (from the halifax website, not allowed to post link) Have they definitely given me the right card?

scottishblondie

porkedpie wrote: »

OK, so given that I will be abroad for a while, if I am getting near my limit, I should just pay some into the account and not worry too much about the DD taking me into credit.

Additionally, they have given me a limit of £500. What do you think my chances are of getting an increase? My income is essentially 0 since I am a student but I have enough cash/interest free overdraft in the account my DD is coming from to cover me for the time I'm away. I just want a cheap way to get at it abroad

Finally, my online account lists it at a "Standard Mastercard" not a clarity card. Is this normal. The card itself looks like the design on the Halifax Plus, rather than the clarity (from the halifax website, not allowed to post link) Have they definitely given me the right card?

The card will appear as "Standard Mastercard" online, and it is a blue card with a large white cross on it (which having checked is indeed what shows on the website). If yours doesn't look like that then I would recommend you phone them and check what you have been given.

As for a limit increase, I doubt you would be granted one this early. You normally need to hold the card for at least 6 months before they will up the limit.

YorkshireBoy

scottishblondie wrote: »

If yours doesn't look like that then I would recommend you phone them and check what you have been given.

The retained copy of the credit agreement will detail which card the OP has, if not directly...the summary box, pre contract information, and T&Cs will give the game away.

Additionally, the paperwork to which card was affixed (also retained and suitably filed?) details the main features...so also defines which card the OP has.

Of course he can ring if he wants, but I don't believe it's necessary...based on the amount of bumph I got with my recent Halifax card application.

scottishblondie

YorkshireBoy wrote: »

The retained copy of the credit agreement will detail which card the OP has, if not directly...the summary box, pre contract information, and T&Cs will give the game away.

Additionally, the paperwork to which card was affixed (also retained and suitably filed?) details the main features...so also defines which card the OP has.

Of course he can ring if he wants, but I don't believe it's necessary...based on the amount of bumph I got with my recent Halifax card application.

True, but you are assuming that the OP has retained the bumph! A lot of people just bin it all

porkedpie

Thanks for all your help guys.

Having checked at www(dot)halifax(dot)co(dot)uk(slash)creditcards
mine definitely looks like the Halifax Plus, rather than the Clarity.

i.e. It has a white border and a silver outline of the cross in the middle, rather than the big blue cross as the website shows.

I definitely have the bumf filed, but it's at home and I'm at Uni. I think I'll give them a ring to make sure. They could just put it on the statement!


EDIT:
Although, the statement does say "Foreign Exchange Fee: 0.00%" which suggests it is a Clarity. (There are no foreign transactions on this statement though so it might be blank rather than really 0. Pffft, I'll just ring them up.

glider3560

porkedpie wrote: »

Having checked at www(dot)halifax(dot)co(dot)uk(slash)creditcards
mine definitely looks like the Halifax Plus, rather than the Clarity.

i.e. It has a white border and a silver outline of the cross in the middle, rather than the big blue cross as the website shows.

I think the design may have changed in the last few weeks. Does it look like this (i.e. blue at the left, purple-ish at the right)?