Aquacard advice

Phoebs38

Hi guys,
I took out an aquacard a year ago to build up my credit and have managed my account very well- I use it often then pay the entire balance every month. This had led to various credit increases. However due to (as it turns out bad) advice from friends last month I paid of a partial amount (well over the minimum payment), they said it looks better to leave a balance once in a while rather than pay full whack all the time.
Yesterday I went to use my card and was annoyed to find it declines. It turns out that aqua had applied the interest to my balance which led to it going £2 over the limit. On top of that they have immediately applied an overdraft fee leading to me going overdrawn even more. Luckily I saw it today (these charges were applied yesterday- immediately as the E- bill was sent) and I paid off the entire balance.


I was shocked because I thought the interest would be added to my bill (which came out yesterday) and not to my credit card balance. As a result their charges have led me to go overdrawn and not my actual spending. I have rectified this but I was very annoyed with aqua, because had I had a prior warning that those charges were to be added yesterday, I would have moved over the money so I wouldn't be overdrawn.


Does anyone know if this is the correct process? also will it affect my credit score and future limit increases?
Lol this will be the last time I listen to advice from friends regarding managing my credit.

[Deleted User]

You need to allow sufficient headroom beneath your limit for fees and charges.

At least you've learned from it. And definitely get some smarter friends.

Anthorn

Aqua do give advance notice on the statement of the likely interest which will be added. On the on-line statement it's under the "What and when to pay" section. If you have cancelled paper statements and get statements on-line I highly advise downloading the statement reverse because some information is on there which is not on the on-line statement, for example your APR.

Where you are close to your credit limit it's advisable to pay at least the minimum payment and in addition the interest which is to be added. Otherwise as you have discovered, you could go over limit.

The over-limit will go on the history of the account for that month and could affect credit applications but the effect diminishes with time. Just don't get any more of them.

gt94sss2

Phoebs38 wrote: »

Luckily I saw it today (these charges were applied yesterday- immediately as the E- bill was sent) and I paid off the entire balance.

Be aware there will be an interest charge on your next statement as well.

Regards
Sunil

mcmaze

Aqua gives you a notice prior to charging any interest, I had a similar issue with them, when a dispute money was debited again from my card - the paperwork was lost in post and i exceeded my time limit - however when i called them to clear it, I explained what happened and they cleared the £12 penalty. They have an excellent customer service, so if it is your first time, try calling them they might sort it out for you.