over-paying credit card??

Therese1

Please excuse my ignorance ...

I had an interesting conversation with the CC agent last night when trying to make a payment over the phone. In my disorganised chaos (been here once before and this is the only reason I've ever paid interest/late payment) I failed to make my payment on time this month. So, she explained that there would be a late payment and interest charged (is 0% normally). However, she couldn't tell me what the interest would be and wouldn't tell me the rate so that I could roughly work it out and pay ahead.....

oh, that last comment set the cat among the pigeons....hence my question.....

in order to maintain my "I don't do debt" but to get the points benefits of using the card I thought it would be worth thinking about making a payment on my card ahead of time as soon as possible after spending (but not waiting til the end of the month by which time I'll forget again!) so that I avoid my own admin uselessness costs! Oh no she says, "thats against the terms and conditions"...."its a credit card not a debit card"

so,, is this just not what they want me to do or is it actually "wrong"?

I really appreciate that I am in a much better position than so many people on here.

lisyloo

as soon as possible after spending

Obviously we don't have a transcript.
If you have spent something then it's perfectly fine to pay it off after spending.

There are 2 things however that are not ok.
You should not go into credit (this is against Ts&Cs, not insured etc.), however if it's after spending then that shouldn't be the case.
The other thing you MUST do is make at least the minimum payment between the statement date and due date (allowing for clearance).
If you pay early i.e. before the statement date then it counts as the previous month and not this month and therefore you may get a missed payment charge for this month. So you must pay a relevant (at least min) amount AFTER the statement.

I hope that makes sense.

grumbler

Therese1 wrote: »

So, she explained that there would be a late payment and interest charged (is 0% normally). However, she couldn't tell me what the interest would be and wouldn't tell me the rate so that I could roughly work it out and pay ahead.....

DIY.
Your APR is available on all your statements.
Work out your daily rate and calculate the interest on the daily basis.

in order to maintain my "I don't do debt" but to get the points benefits of using the card I thought it would be worth thinking about making a payment on my card ahead of time as soon as possible after spending (but not waiting til the end of the month by which time I'll forget again!) so that I avoid my own admin uselessness costs!

Set a DD for the full payment and set a reminder in you calendar to make sure there is enough money in your current account for this DD. You know the amount and the date at least 20 days in advance.

p00hsticks

grumbler wrote: »

DIY.
Your APR is available on all your statements.
Work out your daily rate and calculate the interest on the daily basis.

If my understanding is correct, you need to bear in mind that, having missed a payment, the interest calculated will be on each outstanding transaction from the day it was made/received , not just on the 'final balance x number of days late x daily interest rate'

grumbler

Yes, "on daily basis" means the balance at the start (end?) of the day multiplied by the daily rate.

Therese1

Thank you all for clarifying this - I hadn't appreciated the "uninsured" element to be honest.

I have made a rough guestimate of interest and this morning made an online payment with a couple of quid to spare just in case - ....

presumably that means that since I have already spent the interest then I am within the rules - and I will be putting petrol in this this evening so this will swallow up any over payment!

Also, I have decided to go down the "clear balance" direct debit route - can I do this online with the bank or my CC?

eskbanker

Therese1 wrote: »

Also, I have decided to go down the "clear balance" direct debit route - can I do this online with the bank or my CC?

You need to set this up with the CC company, whether this can be done online depends on which company it is!

grumbler

With the CC. Most allow doing this online, otherwise phone them with your bank account details ready.

katejo

Therese1 wrote: »

Please excuse my ignorance ...

I had an interesting conversation with the CC agent last night when trying to make a payment over the phone. In my disorganised chaos (been here once before and this is the only reason I've ever paid interest/late payment) I failed to make my payment on time this month. So, she explained that there would be a late payment and interest charged (is 0% normally). However, she couldn't tell me what the interest would be and wouldn't tell me the rate so that I could roughly work it out and pay ahead.....

oh, that last comment set the cat among the pigeons....hence my question.....

in order to maintain my "I don't do debt" but to get the points benefits of using the card I thought it would be worth thinking about making a payment on my card ahead of time as soon as possible after spending (but not waiting til the end of the month by which time I'll forget again!) so that I avoid my own admin uselessness costs! Oh no she says, "thats against the terms and conditions"...."its a credit card not a debit card"

so,, is this just not what they want me to do or is it actually "wrong"?

I really appreciate that I am in a much better position than so many people on here.

you can always set up a payment from your bank account but give a date in advance for payment eg. Pay £200 from my account on April 30. That will ensure that you don't forget it.

allybee101

I have a DD set up to cover the minimum payment on my CC each month. That way I know the basic repayment is covered, I can then make overpayments as and when I have spare money. You usually have the choice to set up DDs for the minimum payment or full balance.

garynuman

Therese1 wrote: »

there would be a late payment and interest charged (is 0% normally).

You also need to check that your 0% APR deal hasn't been lost because of this. If you have been put back on 20% (or whatever), most CCC's will reinstate it *IF* it is a 1st offence although they aren't required to. You will need to check though.


Gaz