'Reusing' credit limit?

Gromitt

hermante wrote: »

udydudy - why would you suggest a DD for min payment when the OP said he pays it off in full?

It gives you the option:
If you wish to pay early you can do many times, without worrying about whether or not the DD has already been calculated.
If there is fraud on your account, you know only the minimum will be taken and not the full amount.

chattychappy

I think having a DD injects extra hassle in the OP's circumstances. Seems the OP is well on top of his/her finances and doesn't sound like the kind of person who will forget to pay at least the minimum each month.

udydudy

hermante wrote: »

udydudy - why would you suggest a DD for min payment when the OP said he pays it off in full?

Its a safety mechanism, if the OP went on holiday or becomes indisposed, lets say on 10th and in that month his statement is on 11th. If he has no DD set up for atleast min payment, then if he does not make a minimum payment by the payment date then he is in default and gets hit by late payment charges, interest and a missed payment record on his credit file. Setting up minimum DD avoids these scenarios, however remote it may be. Lots of well intentioned actions go awry due to unforseen circumstances. but the consequences are real and create unwanted issues.

hermante wrote: »

If you are going to pay your bill early, then try to do it a few days before the DD is due to come out, otherwise you may find that the account is put into credit inadvertently (because the early payment hasn't updated yet and the DD is taken for the wrong amount)

Normally card companies do not bother if you card account is in credit due to a minimum direct debit being excercised. I have had experiences with MBNA and Halifax where the account has gone in to £5-£40 in credit as I repaid in full to take advantage of the offers sent in the post and wanted to ensure a zero balance before i made the transaction.