loony luna credit card

look_who's_smiling

Evening all,

I have a smile cc with a 10k balance, I get paid the same date each month (20th) so get paid 12 times a year. I set up a standing order on my internet banking to arrange payments to the card on the 20th each month 6 months in advance at a time.

However I recently had a phone call from smile to say that I had missed a payment to my card, which surprised me. When I have dug into statements ( unfortunately I haven't kept them all) and payments I have found that over the last year my part payment due dates have been getting earlier and earlier each month, the payment I had missed had been due on the 21st a Sunday which means I would have had to make the payment on at least the Tuesday before to give it time to clear but also 4 days before I was due to be paid.
I phoned smile to find out why this was and was told that it was just the cycle I was on and that my payments were usually around the same date each month. ( but,in fact they have gone from the 28th to the 20th) they said that I could ask to have my date changed but I wouldn't be able to do this until I had made my next minimum repayment.

This done I again phoned smile who after half an hour and lots of I'll have to check with my manager agreed to change my statement date.

But it was only after much questioning that they told me that the date changes each month because statements are not produced calendar monthly but luna monthly, so every 28 days, this means they are asking for 13 payments a year, not good when I only get paid 12 times. Their web site only states you get a monthly statement.
As I am looking to tart can anyone reccommend cards that only ask for 12 payments a year as I can't afford to make two payments from one month salary.

CLAPTON

i've never heard of a card that charges 13 times a year.
most (well i'ld say 99.99%) of all cards charge once a calender month so try any other card.

thesaint

I have just checked my Bank of Scotland, Nationwide, Virgin and Halifax credit cards, none of them have the same payment due date month to month.
I thought this is the norm?

I don't believe changing cards is going to help.

samf1971

You're right, credit cards don't charge on a set monthly date, it's all due to the 56 days interest free period and also the 28 days to pay set timing. I prev worked at First Direct and the calculations are a bit complicated to go into but it is def not a set date in the month, which is why it's usually a direct debit payment not standing order so that the date can change in accordance to when your payment is due.

look_who's_smiling

thanks, I will just have to keep an eye on the statement due dates a little more closely in future>

realaledrinker

I work for the Co-op bank (who own smile) and while I am not 110% certain, I am pretty sure that the charging cycles are monthly. The reason for this is that Co-op operate 13x4 weekly periods per year & income variances from period to period are impacted when a one of the big billing cycles 'misses' a 28 day period.

Anyway, if you organise a direct debit for the minimum payment each month rather than a standing order, you would get rid of the risk of missing a payment.

Rafter

Sounds a bit fishy to me. Sounds like they may be trying to reduce the interest free period for customers by pulling forward payment dates. As an interest paying customer it should not impact you that much.

Make sure they refund any unlawful late payment charge.

Also use this board to see whether you can shuffle your £10k balance somewhere where you can reduce your interest bill. A life of balance card like M&S springs to mind, make sure you don't use it for spending though.

R.