payment days for credit card companies

Smallworker

Hi all.

Im new to the forum and i have a question that I hope you can help me with.

I would like to know why, when you are paying by direct debit, credit card compaies dont seem to be able to take your payment on the same day each month. (allowing for weekends & the odd bank holiday).

The payment went out six days later than the previous one. It makes planning financies much more difficult.

Many thanks
Smallworker

The_Boss

Statement days tend to be a fixed number of days apart. Months don't always have the same number of days and when you combine that with weekends it can account for the difference.

timetogrowup89

Hi,

I used to work for a credit card call centre.. Its to do with it being on a 28day bill cycle..
There is nothing they can do to make it land on the same day due to weekends, bank holidays etc.

If you call them up they can look at the 28day bill cycle that you are on and tell you the dates that your bill will be produced and payment expected. There is usually only a few days between, so they will be able to say that it was always be between certain dates (eg. 1st - 5th of month)

People used to call up with theis query all the time when I worked there.

Hope this makes sense

The_Boss

All of my cards give me a date when my direct debit will be collected and collect on that day EXCEPT Capital One. They always collect earlier, a seemingly random time each months.

Now that is annoying.

Smallworker

Thank you for that.
However. what would happen if I was to cancel the direct debit and pay them by transfer from my account every month? would that cause a problem with their 28 day cycle?

The_Boss

Smallworker wrote: »

Thank you for that.
However. what would happen if I was to cancel the direct debit and pay them by transfer from my account every month? would that cause a problem with their 28 day cycle?

Nope, it would be the same as when paying by direct debit but with the risk that you forget to make the payment.

cutestkids

It should tell you on your statement when the next payment is due to be paid either paper statements or online will show this.

It should not affect how you budget for it too much as you know that it will be due each month around the same time so budget for exactly 28 days after the last payment and that way the money will be there from the earliest day it can be taken.
Just check you bank online every day to see if it has come out.

notanewuser

Smallworker wrote: »

Thank you for that.
However. what would happen if I was to cancel the direct debit and pay them by transfer from my account every month? would that cause a problem with their 28 day cycle?

Do you mean on the same date each month?

This would cause a problem because they would expect 13 payments a year and you would only make 12. Late payment charges would soon add up.

The_Boss

notanewuser wrote: »

Do you mean on the same date each month?

This would cause a problem because they would expect 13 payments a year and you would only make 12. Late payment charges would soon add up.

Depends on the lender. My cards are always paid around the same day of ech month, therefore 12 payments per year. I have not yet come across a lender who operate across 13 four week periods.

Smallworker

thank all.
Im going to have a think and come back to you.

timetogrowup89

What I used to advise people to do is set up a standing order for the day you get paid, then call the credit card call centre and get them to note this on the account and change your bill payment date (cycle that you are on) accordingly...

So if you get paid on the last day of each month call them and say that you will be making a payment this date and want to make sure your payment is not late. It can take 4 working days for the payment to reach your account, so if they ensure your payment due date is never before the 10th of the month this will allow for your standing order to leave your account on last day of the month and get to your credit card on time taking into account that there may be weekends, bank holidays etc.

Hope that makes sense?