I don't understand how credit card works

grumbler

ConfusingCard wrote: »

...Logged in today and I'm at -£600. Immediately paid off the full *statement balance which was of ~£350.

ConfusingCard wrote: »

Balance = -£600 Available: £0
Pay full statement balance option = £350 (sorry forgot this in OP)

Then when I log in to my credit card online it says: Balance -£600, limit: £500, available: £200

Logged in again after paying?
It's unusual for a payment to be processed that fast, bit if it was, then
500-(600-350)=250 - new 'available to spend'. It's £200 actually because of £50 transaction(s) pending along with the £350 payment you made.

ViolaLass

ConfusingCard wrote: »

Then when I log in to my credit card online it says: Balance -£600, limit: £500, available: £200

I'm with you on the confusion. I don't see how this adds up.

ConfusingCard

grumbler wrote: »

Logged in again after paying?
It's unusual for a payment to be processed that fast, bit if it was, then
600-350=250 - new balance
500-250=250 - new 'available to spend'. It's £200 actually because of £50 transaction(s) pending.

Ah, that adds up! Thank you so much. Looks like maybe the online credit card shows transactions quicker than the online banking perhaps.

All the other stuff like full statement balance being different to the actual balance confuses me though. I have no idea how they work it all out.

chuckley

I'm confused with Barclaycard to be honest. my statement date and payment date is the same date...

jennifernil

Your actual balance will be different to the statement balance as you are no doubt continuing to spend on the card after the statement is made up.

Another thing to be careful with is continuing to spend after the statement date but before you have made the payment due. It is easy to go over your limit then, especially if you have a fairly low limit.

It really does sound like you need to sit down and talk through the best way to operate your account with someone who can explain it all. This may not necessarily be the bank!

And maybe not that "trusted family member" either.

I would definitely get a DD for the full amount set up right away, one less thing to worry about/remember. May take a few weeks to get it up and running, once it is in place it will say on the statement, meantime continue to pay it manually.

Disputes are not that common, and if you do need to lodge one and you are certain it is a mistake, you can always decline to pay the disputed amount while the bank investigates.

grumbler

chuckley wrote: »

I'm confused with Barclaycard to be honest. my statement date and payment date is the same date...

I think this is impossible. The same day next month maybe?

Linda32

ConfusingCard wrote: »

All the other stuff like full statement balance being different to the actual balance confuses me though. I have no idea how they work it all out.

Lets say your credit card provider adds up the amount you have spent between 1st and 30th of the month. Lets say its £350.00 so they send a statement on 30th of the month and you have to pay £350.00 This is your statement balance.

Then on 31st of the month you buy something for £100.00 so the actual balance is now £450.00 that you owe.

However, the £100.00 that you spent on the 31st will go on the next months statement.

But at this point you have spent £450.00 of your available credit limit of £500.00 as you said in your OP.



Does that help at all

ConfusingCard

jennifernil wrote: »

Your actual balance will be different to the statement balance as you are no doubt continuing to spend on the card after the statement is made up.

Another thing to be careful with is continuing to spend after the statement date but before you have made the payment due. It is easy to go over your limit then, especially if you have a fairly low limit.

It really does sound like you need to sit down and talk through the best way to operate your account with someone who can explain it all. This may not necessarily be the bank!

And maybe not that "trusted family member" either.

I would definitely get a DD for the full amount set up right away, one less thing to worry about/remember. May take a few weeks to get it up and running, once it is in place it will say on the statement, meantime continue to pay it manually.

Disputes are not that common, and if you do need to lodge one and you are certain it is a mistake, you can always decline to pay the disputed amount while the bank investigates.

Thanks. I'll definitely get a DD set up after reading people's responses here. Also I shall tell my trusted family member that they should reconsider how they use their cards.

If I've got a £500 limit and spend £200 but pay it all back the same day, then spend £400 over the rest of the month how does that affect the statement balance? This is the part that confuses me most.

chuckley

grumbler wrote: »

I think this is impossible. The same day next month maybe?

yah that's what i mean sorry.

whereas my aqua is mid month and payment at start of the month.

so with barclaycard they're taking calculating the 'whole' balance on the payment/new statement date. whereas aqua cuts off at an certain date, so anything after than heads into the next month.

that's why I'm confused.

ConfusingCard

Linda32 wrote: »

Lets say your credit card provider adds up the amount you have spent between 1st and 30th of the month. Lets say its £350.00 so they send a statement on 30th of the month and you have to pay £350.00 This is your statement balance.

Then on 31st of the month you buy something for £100.00 so the actual balance is now £450.00 that you owe.

However, the £100.00 that you spent on the 31st will go on the next months statement.

But at this point you have spent £450.00 of your available credit limit of £500.00 as you said in your OP.



Does that help at all

That does, thank you

Following on from that, what happens if on the 1st of the next month I pay off the £100? Does it then get taken off that month's statement amount?