Overpaying CC with Direct Debit?

Kingy71

if I set up a DD of say £20pm but my CC balance is £0 and I don't spent on it for several months or more, what happens to the extra money I pay.

Im guessing it just accumulates, it could possibly go into the £100s or £1000s.

I could be using the CC as a savings account.

??

planteria

you could, in a way, in that your credit card would move further & further into a +ve balance.
but why would you?
in the old days EggMoney paid 4% on positive balances.
long gone now though.. can't see why you would do this:think:

Kingy71

No, I dont want to use it as a savings account!

A DD will be paid each month, regardless if I spend on the CC or not.
I have a £200 limit, surly Capital One wont allow me to be £1000s in credit.

Tragen

Why would you do this?

Some CC T&C say that if you are in +ve they may terminate your account.

bengal-stripe

Kingy71 wrote: »

if I set up a DD of say £20pm but my CC balance is £0 and I don't spent on it for several months or more, what happens to the extra money I pay.

If no monies are due, a DD will not collect any payments.

Kingy71

I always believed that a Direct Debit, of say £20, once setup, would be taken from my account each month.

Always £20, every month Regardles.

Am I wrong?

~Beanie~

Kingy71 wrote: »

I always believed that a Direct Debit, of say £20, once setup, would be taken from my account each month.

Always £20, every month Regardles.

Am I wrong?

Yes. No balance outstanding, no DD taken.

grumbler

Tragen wrote: »

Some CC T&C say that if you are in +ve they may terminate your account.

Any examples(s)?

grumbler

Kingy71 wrote: »

I always believed that a Direct Debit, of say £20, once setup, would be taken from my account each month.

Always £20, every month Regardles.

Am I wrong?

To some degree:
A DD can be set up to pay

• full balance (variable)
• minimum amount (variable)
• fixed amount.

Many CC companies offer only the first two options.

Stevie_Palimo

grumbler wrote: »

Any examples(s)?

I think it is frowned upon more than anything here and the cc Companies want to make a profit rather than sitting on peoples money, I have paid my cards before with additional by mistake and been in credit on a few occasions with no issues.

20aday

I've overpaid my credit cards before by mistake and ended up in credit.

Soon rectified it by spending on the card and bringing the positive balance down.

Am I right in thinking a positive balance means Section 75 cannot be used if something goes wrong?

And in terms of Direct Debits if there's no payment due (i.e. zero) then it's not collected.