I don't understand how credit card works

grumbler

A statement is just a snapshot of your account on the statement day. So, it incorporates all debit and credit transactions that were processed before this date.

Another question is whether extra payments between the statement date and the due date affect (reduce) the DD amount if it's set up for a full payment. The answer is - it depends. On the CC provider and on the timing.

ConfusingCard

grumbler wrote: »

A statement is just a snapshot of your account on the statement day. So, it incorporates all debit and credit transactions that were processed before this date.

Another question is whether extra payments between the statement date and the due date affect (reduce) the DD amount if it's set up for a full payment. The answer is - it depends. On the CC provider and on the timing.

So if I'm paying by DD it would be possible to pay the extra twice....? I.e overpaying the bank? Or would it come off the next statement?

grumbler

"Extra" implies paying at least twice, so your "extra twice" is confusing.

Yes, it's possible to pay more than needed, especially when making payments close to the DD date. Some providers adjust the DD amount accordingly, but only if the payment is made well before and they have time to adjust it.

So, if your balance gets close to the limit and you make extra payment to avoid getting over it, you have to keep the DD in mind if it's coming and is set for the full (last statement) amount.

ConfusingCard

grumbler wrote: »

"Extra" implies paying at least twice, so your "extra twice" is confusing.

Yes, it's possible to pay more than needed, especially when making payments close to the DD date. Some providers adjust the DD amount accordingly, but only if the payment is made well before and they have time to adjust it.

I see.

What happens if you go over your limit if paying by DD...?

At the moment I sometimes pay off the card halfway through the month so maybe I've actually spent more than £500 on it within the period but as I keep paying it off it doesn't go over the limit. I wouldn't be able to do that if paying by DD?

grumbler

ConfusingCard wrote: »

What happens if you go over your limit if paying by DD...?

The same as if you pay by other means. You get charged a fee for going over.
If the balance gets close to the limit you have either to stop spending for a while or to make an extra payment that may or may not affect the DD amount.

At the moment I sometimes pay off the card halfway through the month so maybe I've actually spent more than £500 on it within the period but as I keep paying it off it doesn't go over the limit. I wouldn't be able to do that if paying by DD?

You would.

jennifernil

OP, you said you are using this card because you get cashback, but IMO you are making things more complicated for yourself with all this spending and repaying, and making it much more likely that you will trip up and incur charges, quite likely costing you more than the cashback.

I presume you cannot ask for an increased credit limit yet?

If you have the cash to spend on repayments, why not just use your debit card and keep things simple until you can get an increased limit.

grumbler

jennifernil wrote: »

OP, you said you are using this card because you get cashback, ...

If you have the cash to spend on repayments, why not just use your debit card and keep things simple ...

Because the OP will lose the cashback? I used to top up my Aqua too when it paid 1% and even bigger cashback.
Now I top it up too if needed - when using as my main card for spending abroad.

Every little helps. Even if it's as little as 0.5%.

ConfusingCard

jennifernil wrote: »

OP, you said you are using this card because you get cashback, but IMO you are making things more complicated for yourself with all this spending and repaying, and making it much more likely that you will trip up and incur charges, quite likely costing you more than the cashback.

I presume you cannot ask for an increased credit limit yet?

If you have the cash to spend on repayments, why not just use your debit card and keep things simple until you can get an increased limit.

Because the cashback is totally worth it - it's Natwest so not the best cashback card (from what I've read on here) but even so, at the moment I get 3% back on supermarket, they've had an offer where I've gotten 10% back on bars/restaurants.... 1% back on all contactless payments - it all adds up

It is complicated but I think that's my fault for not really understanding how it's all supposed to work with payments... :undecidedhence this thread.

chuckley

from you missed a payment, haven't they removed your cash back advantages?!

ConfusingCard

chuckley wrote: »

from you missed a payment, haven't they removed your cash back advantages?!

I don't think I have missed a payment. _pale_