Question about Credit Limit

gated

Say I have a credit limit of £1000.00, and I max-out the card, then I get a statement for minimum of £25.00.

Have I gone over my credit limit because I owe £1025 ?

I have both a Halifax One card and a Barclay Card, if it matters.

grumbler

gated wrote: »

....I max-out the card, then I get a statement for minimum of £25.00.

Don't know what this means.
I guess £25 is the minimum payment that you have to make towards £1000 that you owe.

gated

Yes I mean like that :-)

OP still stands.

bengal-stripe

gated wrote: »

Say I have a credit limit of £1000.00, and I max-out the card, then I get a statement for minimum of £25.00.

Have I gone over my credit limit because I owe £1025 ?

That minimum payment will be due some two or three weeks after the statement got compiled. You will find on your statement the exact date your payment is due (at the latest).

If you have not paid on or before the "due date" the you will have exceeded your limit (and failed to pay at least the minimum payment). Depending on your method of payment, it might take a few days for the money to hit your account.

grumbler

bengal-stripe wrote: »

If you have not paid on or before the "due date" then you will have exceeded your limit ...

...only because the fee will be charged for the missed payment and the interest added.

Horseunderwater

Why be so daft in the first place. I have maxed cards out in the past & then lost my job - it was a nightmare to sort out. But I did & now have a very good rating once more even though I have debt on a CC it is a 0% one, so I will be paying capital back by DD each month.
Oh & if you do not pay the min by that date they will add at least £12 on top of it. Set up a DD to pay min each month, then if you can afford more you can do that by transfer manually.

gated

I think I have it worked out, for example:

+ Previous Balance
+ Purchases
+ Interest & Charges
- Payments
= New Balance

Where the "new balance" should not exceed the credit limit.

I have not made any glaring errors, have I guys ?

Thanks for all your help so far.

gated

Just to add something regarding my OP...

I thought that if my "new balance" was up against my "credit limit" **and** I had a minimum payment to make (obviously I would) ...then the bank might say New Balance + Outstanding Amount = Total Credit.

Do I make sense ?... and am I making any errors ?

grumbler

Don't overcomplicate the things that in fact are very simple. Your post #7 was almost correct.

• You are allowed to borrow no more than your credit limit is.
• At any instant your balance has to be below your credit limit.
• Like for any account the balance is a result of all transactions: your spending, your payments, interest and charges.
• After each statement you have to make at least a minimum payment before the due date.
• To avoid any interest and any charges you have to always pay the statement balance in full and never withdraw cash.