Minimum payment+ on credit card

GingerBob_3

Only ever paying the minimum payment on a CC is held against you by lenders (except when it's on a promotional rate - supposedly). It's easy to set up a minimum payment DD, but most CC card companies don't offer the facility of what might be called minimum+; minimum payment plus a little bit on top. If I recall correctly I think there's something on Barclaycard that allows you to pay a % of outstanding amount or something similar, but I think this is not a common approach.


Presumably it's alright to have a standing order for £1 going in a day or two ahead of the DD minimum? They don't then immediately take the £1 as "below minimum payment" and snitch on you to the CRAs?


If the above is feasible then shouldn't it be standard advice, rather than just the minimum payment DD?

SnowTiger

GingerBob wrote: »

Presumably it's alright to have a standing order for £1 going in a day or two ahead of the DD minimum? They don't then immediately take the £1 as "below minimum payment" and snitch on you to the CRAs?

If the above is feasible then shouldn't it be standard advice, rather than just the minimum payment DD?

Yes, setting up a Standing Order for £1 will do the trick.

Try to make it more if you can. Even small extra payments can make a big difference.

I'm not sure what you mean by "standard advice". Usual advice is to make at least the minimum payment.

GingerBob_3

SnowTiger wrote: »

Yes, setting up a Standing Order for £1 will do the trick.

Try to make it more if you can. Even small extra payments can make a big difference.

I'm not sure what you mean by "standard advice". Usual advice is to make at least the minimum payment.

Thanks. This is not particularly for me. I was just mulling over the possibility. The "standard advice" is what's normally given when posters ask why they've been hit with a late payment marker; "always have a minimum payment DD set up, then it won't happen". So maybe it should now be; "always have a minimum DD set up and a £1 SO chasing it, then you'll never miss a payment and you won't be hit with a minimum payment marker"

mcpitman

GingerBob wrote: »

"always have a minimum DD set up and a £1 SO chasing it, then you'll never miss a payment and you won't be hit with a minimum payment marker"

What's a minimum payment marker? I've never seen one of these.

bsms1147

There's a bit of debate whether it matters or not. Personally I don't feel it does, and will continue paying the minimum.

Bear in mind that if you mistime the payment, the direct debit would be reduced so only the minimum is made in total anyway.

YorkshireBoy

bsms1147 wrote: »

There's a bit of debate whether it matters or not. Personally I don't feel it does, and will continue paying the minimum.

If I was managing real debt, rather than stoozing debt, i'd be sure to try and avoid the min marker and would advise others to do the same. As it is, its too much trouble for me.