CC Statement- Confused!

oscarbuster

So I have just today viewed my second statement online for my Aqua credit card account.

I had got the credit card in September with a very small £100 limit and received my first statement in October. The minimum payment was for £5 which Aqua took directly from my direct debit account. I then spent very close to my limit and owed £89. So I started to pay back a tenner or so every week.

I then had a bit of a small splurge and bought myself a new jacket, bringing the total owed back up to just over £95. I paid £20 back last week, meaning I now owe them £75.

So I kind of anticipated that the minimum payment would be roughly around the same but I have just checked online and my minimum payment for November is £16.83 (with £2.87 being interest).

Is £16.83 not an excessive monthly amount on a £100 credit limit?

I know it isn't alot of money and yes I can afford to pay it but I am just surprised at them looking for nearly £20 on such a low limit.

Is that a normal amount?

CLAPTON

are there any charges on the bill?

rolls99

Minimum amounts to repay vary by card, however it works out, it's a percentage of the debt.


Some cards do have a minimum payment, EG minimum £25 (or full balance if less)


BUT - with a £100 limit. you would be best advised to CLEAR it off if you can NOW.


By all means spend a few quid, wait on statement and then clear it; you won't pay interest (but need to clear the card twice for this to happen now), because running a balance and spending up to 95% limit really isn't worthwhile.

molerat

Are there any other charges in there. Aqua is 1% + interest and charges. Are you sure you have not gone over your limit somewhere along the way ?


and


STOP PAYING INTEREST, pay it off in full NOW

shortcrust

I suspect you've gone over your limit at some point and been charged £12. £12 plus your £2.87 and 1% of your balance fits nicely with £16.83. If not, then give them call.

oscarbuster

Thanks for the replies guys.

No I definitely haven't gone over the limit at any point- as mostly when I bought anything I would pay a tenner or so off it the next day.

I did just go and check again to make double sure that I hadn't incurred any over the limit fees and as thought I haven't.

Yeah I think I will just pay the balance in full tomorrow- it seems very silly to be paying interest for no real reason.

I think I will also contact them with regard this month's minimum payment, it'll do no harm to ask.

patanne

Why not just set your direct debit to pay it off in full. That way you will have to change it if you want to pay less and will not land up paying interest again. It also avoids the "I meant to pay this off before interest became due but life got in the way" scenario. When you have been around MSE a little longer you will learn that a cc is just a means of keeping money in your interest earning account for the "up to 56 days" before paying off the cc in full and when you can get one - for getting cashback on spending. To the banks a cc is a means of getting you to pay interest because you set the repayment at the minimum and also charges for any late payment because you messed up, your bank messed up or you were on your sick bed.

SnowTiger

oscarbuster wrote: »

Thanks for the replies guys.

No I definitely haven't gone over the limit at any point- as mostly when I bought anything I would pay a tenner or so off it the next day.

I did just go and check again to make double sure that I hadn't incurred any over the limit fees and as thought I haven't.

Yeah I think I will just pay the balance in full tomorrow- it seems very silly to be paying interest for no real reason.

I think I will also contact them with regard this month's minimum payment, it'll do no harm to ask.

Something strange seems to have happened.

All this buying things and paying it off before the statement is produced may be doing nothing to improve your credit reports. It may appear that you're not using the card at all!

If I were you, with a £100 limit, I would spend up to about £80 and pay it off in full when the statement is produced. Then repeat...

oscarbuster

Patanne- I will do exactly that, set up the DD to pay in full, I'll actually do it now. Thanks!

SnowTiger- I had infact started to wonder if I was harming my own credit report through my own ignorance, and as you say it may look aa if I am not even using the card. I have actually been making payments here, there and everywhere. Ummm!

You're right, I will stop making payments before the statement is produced, instead I will pay in full when it is produced. Thanks!

Ben8282

The minimum payment would appear to be more than would normally be expected. However, surely with a £100 credit limit you are going to pay more than that. If you are up to £95 and expect to use the card again next month.
With a credit limit as low as that I really can't understand why you are not paying it in full every month. Surely you have £100 pm spending that you can put through it. I am also thinking that your apparent inability to make full payment each month on a card with a £100 limit will do nothing for your credit score.

patanne

I wonder if it possible that the minimum repayment has been worked out based on the total usage on the card rather than the amount due? I also noticed that my last cc statement has a note on it to say that they are increasing the minimum payment.