Credit card payment help

Kirsti13

Just got my first credit card so sorry for the daft question but i can't find the answer in the info they sent with it...

It is a tesco 18 month no interest on purchases, on the online banking it says my next payment date is 7th Nov, but with no amount as it hasnt been used yet.

I need help understanding when to make the payments and what amount to pay. I dont want to pay off in full each month but i dont want any late payment charges.

If the payment is due on the 7th, i plan on paying each month on the 1st, is that ok?

Also what transactions would this include? Like if i make a payment on the 1st but then i use my card on the same day, and that trans appears on my statement on the 3rd, would that be included in the 7th payment?

Sorry if that sounds stupid but its all new to me!

bengal-stripe

You will get a monthly statement listing all the purchases you have made the previous month. You will also see the minimum payment (1-3 % of the balance) and the date the payment is due (some 2 or 3 weeks later than the statement). Make sure you pay that amount before the 'due' date. Otherwise you might lose the 0 % promotion.

Statements will be frequently on-line these days. You should receive a notification when the statement has gone on-line. If you haven't used the card yet, no statement will have been issued and no payment is due.

P.S. The statement is the cut-off point. Any further purchases between statement and 'payment due' date will appear on next month's statement.

CLAPTON

just to add

you need to pay whatever the statement says i.e. at least the minimum the statement says

any purchases you have made after the statement was produced can be ignored until you get the following statement.

dzug1

A direct debit for the minimum payment may be the best way to go. Just be careful when the deal is coming to an end to plan your exit strategy carefully.

And make sure that your statement refers to the direct debit before you rely on it - there may not be time to get it set up in time for the first statement.

datlex

If you have no balance you have nothing to pay. As said above spending after the statement will be on the next statement. You can wait to pay these if you wish until the payment date for that statement.

However, if you have a small limit and/or wish to keep control you can make additional payments to cover what you have spent. This can reduce the temptation to spend on both credit card and debit card. It will also mean in the future after the 0% deal is finished instead of having a months worth of purchases on your card, you only have a few. This means that the interest they say you will pay (obviously only if you don't clear that balance) is on just those last few items not the whole month's spending. From experience I have found that some card companies seem to let you make these earlier than others- some allow you to put the money into the credit card account prior to the transaction going through, some want the transaction to go through before you pay them for it.