First Credit Card Question

codeX

Hi all,

I got my first credit card last month and have a noob question about the billing and payments. The card is set to repay in Full via Direct debit. So here is the situation:

Last month I used the card to pay for casual shopping and to pay for a deposit for a rented car. I got the statement dated on 28th of £450 with the payment due date on 24th of June. The car deposit of £200 was refunded early this month and I manually paid the remaining balance off. I use the card regularly and would probably have around £250 balance by the last month's due date (24th June).

So my question now is how much would the Card company withdraw via Direct Debit on the 24th?

a) £0 - Because the refund and manual payments cleared the statement balance of £450.

b) £450

c) £250- from this month's spending.

Thanks for your help.

Cheers..
J

thebritishbloke

codeX wrote: »

Hi all,

I got my first credit card last month and have a noob question about the billing and payments. The card is set to repay in Full via Direct debit. So here is the situation:

Last month I used the card to pay for casual shopping and to pay for a deposit for a rented car. I got the statement dated on 28th of £450 with the payment due date on 24th of June. The car deposit of £200 was refunded early this month and I manually paid the remaining balance off. I use the card regularly and would probably have around £250 balance by the last month's due date (24th June).

So my question now is how much would the Card company withdraw via Direct Debit on the 24th?

a) £0 - Because the refund and manual payments cleared the statement balance of £450.

b) £450

c) £250- from this month's spending.

Thanks for your help.

Cheers..
J

Different providers handle refunds in different ways. Some will class it as a credit, others won't. Your spending this month, will go on to your NEXT statement.

Your statement was £450. If you haven't made any payments, then your payment will either be £450 or £250 depending on the provider.

If you have made a payment, it'll be adjusted to account for whatever you paid (provided you paid it off early enough).

codeX

Thanks mate.. So I guess I'll have to keep the refund amount of £200 in my current account (just in case if they decide to DD).

CLAPTON

who is the card with?

does your actual statement say the balance will be paid by direct debit?

bayzat

If you've made a payment manually, they usually won't charge it if you are not going to be subject to a minimum payment penalty

thebritishbloke

bayzat wrote: »

If you've made a payment manually, they usually won't charge it if you are not going to be subject to a minimum payment penalty

If your direct debit is set up to take it in full, they'll adjust it accordingly so that you pay off the full balance. That's only if you pay it off manually early enough though.