Definition of 'Minimum Payment' for Credit Card

Simon7685

Also remember when paying the minimum payment they put a minimum payment marker on your credit file for each month you make the minimum payment. This can make it look like you are struggling to make repayments and in turn can affect future credit applications.

To avoid the minimum payment marker just pay £1 more than the minimum each month. Or better still clear the balance if you can or move it to another card with a 0% offer.

Another good piece of advice is set up a DD to cover the minimum payment each month, that way it is always covered should you find yourself in a similar position, or you just forget and miss the payment due date.

molerat

A minimum payment rarely stays the same from one month to the next.

pennypincher3562

I've phoned and made a complaint. I appreciate that I still will still be subject to the 'terms and conditions' of the card regardless of the outcome of my complaint

However I think that when you speak to an adviser, they should give you the correct information (particularly when it comes financial matters.)

Cheers
PennyPincher3562

ceredigion

pennypincher3562 wrote: »

I've phoned and made a complaint. I appreciate that I still will still be subject to the 'terms and conditions' of the card regardless of the outcome of my complaint

However I think that when you speak to an adviser, they should give you the correct information (particularly when it comes financial matters.)

Cheers
PennyPincher3562

But the minimum payment did not change, and the adviser was perfectly correct. And you know it.
See what you wrote in post #3 below.

pennypincher3562 wrote: »

Thanks ZX81. I have a slight issue I am trying to resolve.

I am not used to using credit cards, and am bit naive with regards to credit.

I have an 'interest free card', and the card's interest free period expired this month.

I phoned the card company 2 months ago, and ask will the minimum payment increase once the interest free period expires. The woman on the phone said 'no.'

I got the bill in today, and of course the payment has increased - £31 for the minimum payment, and £50 interest.

I am confused here, should she not have not said, yes, the minimum payment will increase, as you will be paying interest as well?

Thanks
PennyPincher3562

pennypincher3562

Hi Ceredigion

I could be getting confused here. I'm not long off the phone, and the woman said I should have been told about my minimum payment increasing from 30 quid to 81 due to the added interest.

Cheers
Pennypincher3562

ceredigion

pennypincher3562 wrote: »

Hi Ceredigion

I could be getting confused here. I'm not long off the phone, and the woman said I should have been told about my minimum payment increasing from 30 quid to 81 due to the added interest.

Cheers
Pennypincher3562

And the statement you received the month prior to your 0% deal ending, will have had a projection for the following month that said ?

pennypincher3562

Hi Ceredigion

I know now (after being told) that there is a projected amount somewhere in the statement.

However, im genuinely not familiar with credit card jargon. I phoned the help line to get the correct information, was given the wrong information, then complained.

Nothing lost.

Cheers
Pennypincher3562

ceredigion

pennypincher3562 wrote: »

Nothing lost.


Pennypincher3562

Not to you maybe but ultimately the good will gesture impacts on my dividend

chattychappy

ceredigion wrote: »

Not to you maybe but ultimately the good will gesture impacts on my dividend

Perhaps positively....

Companies make goodwill payments for commercial reasons. Eg for customer retention, reducing the costs of compliance.

boo_star

pennypincher3562 wrote: »

Hi Ceredigion

I know now (after being told) that there is a projected amount somewhere in the statement.

However, im genuinely not familiar with credit card jargon. I phoned the help line to get the correct information, was given the wrong information, then complained.

Nothing lost.

Cheers
Pennypincher3562

You were given the correct information. The minimum payment hasn't increased, per se. The calculation is the same. In real terms it has but amounts fluctuate depending on the balance.

You mention losses due to not doing a balance transfer but what were you expecting to happen if they kept it at your previous minimum payment? You'd be accruing interest one way or another regardless.

They'll probably give you a GOGW payment but don't take that as a "win," it's just that the cost of dealing with endless calls from you is more than throwing a few quid at you.