DD or not DD that is the question?

cos_2

I have minimum amounts set on two and I vary the amounts on the third (the one I use most).

I like having them (min payments) there to protect me from my memory - there's always a risk I'll forget and get a £12 penalty.

However, I must say loads of thanks to chattychappy for a well written piece on the pros and cons. Good stuff! I recognise much of what you say and have already taken that into consideration, I hope. I rarely spend enough on a card that my overdraft facility wouldn't cover it except for holiday time, and I write down the payment date all over the place!

chattychappy

Just to add [to my post above re the £6800 fraud], because the account had long been dormant I wasn't in the habit of pro-actively checking the account online. Only when I got back to the UK did I see what had happened on the paper statement. As the due-by date had passed, interest and charges had already been applied. They were all refunded. (It was staff fraud.)

Nowadays I don't have accounts unless I can monitor them online and routinely check all accounts, even dormant ones whilst away from the UK.

Gromitt

chattychappy wrote: »

I never sign DDs for CCs.

(2) and (6) are the exact reasons why I would never setup a DD for the full amount. I can always afford the minimum DD regardless of card balance, so that isn't an issue to me. I would also still want to pay the minimum even if the card was fraudulently used, just to prevent any automatic actions being taken due to non-payment, even if the balance was fraudulent. I know I would get them back, but sometimes it is a big hassle, specially if it also includes CRAs.

cos_2

Agree again with the recent posts.

I've always got online access and check (usually) daily on my accounts. My OD limit is £5000 so, when I DO set my 'active' CC account for full payment I always know it'll be covered. Technically, it could fail as that particular CC account has a limit of just under £12k, but, as I say, I keep tabs on it very often.

However, having read what chatty and Grommit have written, I'm going to keep them ALL at minimum and just pay the extra online as required.

Thanks guys.

CRISPIANNE3

bar_t1 wrote: »

I was just wondering if everyone sets up a direct debit to pay their credit cards or do some folk not bother with DD and use another method?
Also is paying by DD beneficial to ones credit rating at all?
Thanks.

I always have a dd in place. The reason being if i ever forget to pay the account manually i know the dd will kick in.

Most card companies will not take dd provided sufficient time has been allowed for the payment to reach the account. However the only card that will still take the payment is MBNA but I normally send them a message to cancel the dd for that particular month.

Personally I cannot see how you pay making any difference to your credit rating. The important is pay within the agreed time. Also I have never found making the min payment on promotional offers causing me any issues for future credit.

Meadows

bar_t1 wrote: »

I was just wondering if everyone sets up a direct debit to pay their credit cards or do some folk not bother with DD and use another method?

I tend not to set up a DD with a CC as sometimes you can not get out of these, you have to cancel via the merchant (and some can turn a blind eye/ear to these requests), if you do it by Debit card you have more control.

But it all comes down to what you can afford! Will you always have funds in the account to cover the DD with a Debit card or do you need the extra time a Credit card payment would give you?

chattychappy

CRISPIANNE3 wrote: »

Personally I cannot see how you pay making any difference to your credit rating.

Neither can I.

ic

I've paid all my credit cards in full by direct debit, for the past 14 years. I've never had any trouble. I like direct debit because it waits until the last moment to pay, I can't forget, if there is a problem I can call my bank and request an immediate refund (as yet I've never had to call on this). I see all to often on these forums people paying late because they forgot, or left it too late - I just can't see the benefits. If you pay an extra amount early, as long as there's about four days grace the direct debit will be adjusted to compensate.