first credit card question...

james3333

just got my first card 0% 12 months.
made a purchase.
set up DD for minimum payment.
its now showing online as minimum payment £9.56 due 29 may.
iam intending to pay £50 ish per month off the balance.
now, do i wait for the statement to come through the post and the minimum payment to be taken by DD until i make an additional payment of £50?

also, does it matter that the minimum payment due date is 29th may AND the DD date is 29th ( the DD is coming from another bank, will it need time to clear?)
when i set up the DD wirth the credit card company, surely they would take this into consideration?

RTNI

james3333 wrote: »

just got my first card 0% 12 months.
made a purchase.
set up DD for minimum payment.
its now showing online as minimum payment £9.56 due 29 may.
iam intending to pay £50 ish per month off the balance.
now, do i wait for the statement to come through the post and the minimum payment to be taken by DD until i make an additional payment of £50?

also, does it matter that the minimum payment due date is 29th may AND the DD date is 29th ( the DD is coming from another bank, will it need time to clear?)
when i set up the DD wirth the credit card company, surely they would take this into consideration?

So long as you can see that the statement has been posted to you, then you can make an additional payment of £50 and it will be ok.

The DD is taken from your BA on the day the CC is due, this is normal and nothing to worry about. Chances are that the additional £50 payment will NOT stop the DD coming out, ie you will pay in total £59.56 for that statement.

RT

MPH80

Don't worry about the date of the DD. They'll take and credit it same day.

The problem with making extra payments over the top BEFORE the DD is taken is that sometimes the company will take the payment as the minimum and cancel the DD. Egg, in particular, will do this.

The key to identify this is to read the bit of text on the paper statement. As a general it'll say "The minimum payment, less any subsequent credits, will be collected on ..." or "the minimum payment will be collected on ..."

If they say the former - it'll mean an extra payment before the DD will result in the DD potentially being cancelled.

The best idea is to make your extra payment on the DD date. Since you've made the min there's no problem with late payment fees and you're not risking the DD not being taken.

Oh - and I hate to point it out - but if you're carrying debt on the credit card (which you are) then your signature is wrong.

M.

james3333

MPH80 wrote: »

Oh - and I hate to point it out - but if you're carrying debt on the credit card (which you are) then your signature is wrong.

M.

oh, christ your correct ( well kind of, its good debt) i have loads of savings, just dont want to use them!!!!! so in theory, its not really debt, is it!;)

james3333

so, if i wait until the DD comes out, then within a few days or so pay £50 online, that will be ok?
correct?

swayze

james3333 wrote: »

so, if i wait until the DD comes out, then within a few days or so pay £50 online, that will be ok?
correct?

I would advise making the payment online first. If you make the £50 payment after the dd is claimed it could go to the next statement instead. It depends on how quickly the online payment goes through though.

james3333

swayze wrote: »

I would advise making the payment online first. If you make the £50 payment after the dd is claimed it could go to the next statement instead. It depends on how quickly the online payment goes through though.

does it matter if it goes to the next statement.. iam not botherd, does it affect anything>?

swayze

james3333 wrote: »

does it matter if it goes to the next statement.. iam not botherd, does it affect anything>?

No not really.

I know some companies like to see you making more than a minimum payment each month. but thats more of an issue if you are looking for a credit limit increase in the future.
As long as you are making at least the minimum payment each month there should be no problems.

james3333

so, just to clarify.....
i can leave the minimum payment as a DD, then after its come out make an additional payment of £50 online and this will then keep the DD in place for future payments even if the £50 is taken from the follwing month calculations it doesnt matter.?

swayze

james3333 wrote: »

so, just to clarify.....
i can leave the minimum payment as a DD, then after its come out make an additional payment of £50 online and this will then keep the DD in place for future payments even if the £50 is taken from the follwing month calculations?

Correct. Thats how it should work and thats how it does work with the credit cards I have. Double check with customer services just to be a 100% sure. Some companies do vary slightly but I highly doubt it in this issue.

james3333

brill.
cheers for that swayze:money: