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Paying xcess
maureenbulman
Posts: 43 Forumite
in Credit cards
Hi,
I have just had my credit limit raised to £1,500? I owe £436 and have the minimum payment of £15 per month.
Instead of paying next months payment of £15 would it be better to pay off the £436 using the same credit card?? Help
Ps.Thanks in advance
I have just had my credit limit raised to £1,500? I owe £436 and have the minimum payment of £15 per month.
Instead of paying next months payment of £15 would it be better to pay off the £436 using the same credit card?? Help
Ps.Thanks in advance
0
Comments
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What do you mean? Withdraw cash to pay it off?
No.0 -
You can't pay off your credit card bill using the same card just because it now has more of a limit.
Clearly you are using your card and only paying the minimum = more interest for the bank so if you have been on minimum payment for a while they probably judge you worthy of more credit in the hope you will spend more.
Pay off as much as you can to reduce your bill, certainly more than the minimum!Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Yes,thats what i was thinking draw the £436 and pay it off with the same card??0
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That would be insane. You would still be paying interest on £436 but would also now be incurring a cash fee.0
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And the interest for cash advances can be higher.0
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Ok thank you,was just wondering if i drew £436 out a bank and paid it off (capital one charge £3) for cash transactions. But thanks i will not do it now.0
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£3 + interest charged daily at a higher rate also?Censorship Reigns Supreme in Troll City...0
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I checked randomly their Classic card and "The simple interest rate is 30.34% for purchases, 30.34% for balance transfers and 30.34% for cash withdrawals...".forgotmyname wrote: »+ interest charged daily at a higher rate also?
OP, you have a CC, most likely a high-interest one, but seem to have no idea how it works and how to use it correctly.
Start with reading this article: Credit card calculator: beware minimum repayments0
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