MSE News: Beware the credit card overpayment that isn't an overpayment

98 Posts
in Credit Cards
"Customers who try to overpay on their credit card could find their attempt to clear more of their balance doesn't work ..."
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Beware the credit card overpayment that isn't an overpayment

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Beware the credit card overpayment that isn't an overpayment

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Is it me or is the solution simple, send another cheque after the dd has been taken out to the tune of the reduced amount.
Another crazy idea, living on the edge, is to use online banking and avoid the antiquated cheque system.
However I never do!
The person in the article says "it makes overpayments EXTREMELY difficult.". No, it doesn't!!! Its easy to work out how much more you need to send!
I always overpay. I work out what i've spent that month & add whatever extra I need.
People who are shocked to see their DD payment reduced should pay more attention to their statement balance and if they're looking to pay off the card then change the DD for a constant amount or use a standing order for an amount above the minimum payment. Paying only the minimum is bad for your credit rating
Anyway, I don't get it. For a DD you need the money in your current account. So if you pay more during the month, and expect the DD to be taken but it isn't, then just pay the amount of the DD yourself!! And learn from the experience to pay the DD amount + any extra payment the next month!
BTW does anyone know the situation with Tesco? If I want to pay £1 more than the minimum, do I pay £1 and wait for the DD, or £1+min and no DD?