Clearing a Credit Card

Boatdweller

I am clearing a credit card on Friday, and just wonder - should I cancel my DD and sent a payment in manually, or send the manual payment and leave the DD - I don't want to over pay, so not sure of the best way to do it.

MEM62

If your DD is set up for the minimum payment you can leave it in place. If there is a nil balance they won't take anything. If you have anything outstanding in the future you will have a safety net that at least the min payment will be made.

Boatdweller

It's only because my DD will go about a day I pay it off in full, so I don't think the new payment will have registered.

Candyapple

Don't forget if you have any trailing interest from the previous statement. I would wait until the DD has been taken and then make a manual payment for any amount that is left.

Boatdweller

good idea - i'll wait for the regular dd to be taken and then clear the account.

TadleyBaggie

Boatdweller wrote: »

good idea - i'll wait for the regular dd to be taken and then clear the account.

Which will probably mean there is still a small amount of interest to pay the following month.

Mummyto4kids

Id make the payment as planned, leave the DD and if theres a credit once it goes through then call and ask for it back - it will make sure that there is no issue with the payments being short

redpete

MEM62 wrote: »

If your DD is set up for the minimum payment you can leave it in place. If there is a nil balance they won't take anything..

This might not be true in all cases. If the statement has come out and you pay off the entire balance before the DD for the minimum goes out it might still be taken.

I would pay the outstanding amount minus the amount that the statement says will be taken on the DD, then the DD will clear the balance to zero.

rehanmalik3030

Boatdweller wrote: »

I am clearing a credit card on Friday, and just wonder - should I cancel my DD and sent a payment in manually, or send the manual payment and leave the DD - I don't want to over pay, so not sure of the best way to do it.

Its not rocket science.

If you can clear the balance in full before the direct debit is taken then simply call the credit company make sure you speak to an agent make the payment with them making sure it successfully goes through and then get the agent to cancel the direct debit at the credit card end and close the account. The telephone call will be recorded so if anything goes wrong you can always blame the agent. As soon as the call finishes cancel the direct debit at the bank end as well to make sure the bank does not send the direct debit early.

russ.gray

I am planning to clear my credit card this year as I am wanting to apply for a loan to have an extension built. Can anyone advise what the likely hood of getting the loan is if I clear my credit card. According to my credit report the only negative factor is the amount on my credit card.

Thanks

Superscrooge

If you are using a high percentage of your available credit then that is regarded as a negative. So paying off the debt will improve your chances of a loan.

No debts and a credit history with no missed payments will definitely help.

None of us can really say what your chances are. You will also be assessed on affordability. eg. Your income and the amount you want to borrow.

Make sure you are on the electoral roll.