Min payments on credit card

dazzaofdagenham

Deleted_User wrote: »

Min payers are statistically much higher risk than those who pay in full.

True....but am I not showing a level of commitment to them, showing that I can never miss a payment each month.

Also of course, potentially much more profitable.

Yes this is true....

As this thread started, I got a letter from Halifax pointing out that I had only made min payments on account for last several months...that's a fact.....wonder if they factor that in when offering 0% deals or credit limit increase

adindas

Deleted_User wrote: »

That's why avoiding making only min payments has always been recommended.

I would like to make minimum payment + £1 (Say) to my 0%on BT Credit card ? Mind to elaborate uncomplicated and precise way of doing this by DD ?

This discussion of minimum payment + £1 has been going on and on and no one seems to be able to provide an uncomplicated solution for this.

MoneyMission2015

adindas wrote: »

I would like to make minimum payment + £1 (Say) to my 0%on BT Credit card ? Mind to elaborate uncomplicated way of doing this ?

This discussion of minimum payment + £1 has been going on and on and no one seems to be able to provide an uncomplicated solution for this.

Set up a Direct Debit paying the minimum and then a standing order for £1. Set the standing order up so it leaves your account the same day as the DD. Make sure though that once you have cleared the credit card, you cancel the standing order, as unlike the DD which doesn't take money if nothing is owed, the standing order will keep being taken so your card would end up with a credit balance on it, which some credit cards don't like.

[Deleted User]

adindas wrote: »

I would like to make minimum payment + £1 (Say) to my 0%on BT Credit card ? Mind to elaborate uncomplicated and precise way of doing this by DD ?

This discussion of minimum payment + £1 has been going on and on and no one seems to be able to provide an uncomplicated solution for this.

Min payment by DD and £1 by standing order to go out after the DD would do it.

But no need to do it on a 0% offer, as lenders expect min payments on promos.

molerat

I applied for the new TSB platinum and the amount of "responsible lending" guff and dire warnings the world would end if you only paid the minimum that came up on the screen

adindas

Well, I wonder whether you have tried that yourself so it is based on your personal experience rather than on theoretical framework. Try that and you will get suprised when you find out that you are still making a minimum payment.

There has been in a lot of discussion about this. Unless you do that in avery specific tiny windows, the likelihood is that your £1 SO payment will be deducted first before calculating your minimum payment on DD on the statement month and you are still making a minimum payment.

Other option is that to pay a certain amount by DD but you will lose out as you cannot do this on more precise basis such as Minimum payment + £1.

MoneyMission2015 wrote: »

Set up a Direct Debit paying the minimum and then a standing order for £1. Set the standing order up so it leaves your account the same day as the DD. Make sure though that once you have cleared the credit card, you cancel the standing order, as unlike the DD which doesn't take money if nothing is owed, the standing order will keep being taken so your card would end up with a credit balance on it, which some credit cards don't like.

Deleted_User wrote: »

Min payment by DD and £1 by standing order to go out after the DD would do it.

But no need to do it on a 0% offer, as lenders expect min payments on promos.

[Deleted User]

That's why you need to get your timing right and let the DD be taken first.

Ben8282

But why are you only making minimum payments and paying interest on such a small balance? Surely your income is sufficient to repay the £250 in full and use the card for £250 interest free purchases every month?

MoneyMission2015

adindas wrote: »

Well, I wonder whether you have tried that yourself so it is based on your personal experience rather than on theoretical framework. Try that and you will get suprised when you find out that you are still making a minimum payment.

There has been in a lot of discussion about this. Unless you do that in avery specific tiny windows, the likelihood is that your £1 SO payment will be deducted first before calculating your minimum payment on DD on the statement month and you are still making a minimum payment.

Other option is that to pay a certain amount by DD but you will lose out as you cannot do this on more precise basis such as Minimum payment + £1.

I don't pay minimum payment, I have a fixed amount DD set up on my 0% cards, which is way above the minimum anyway but I know that when I have made extra payments to cards in the past they have always told me that as long as the extra payment isn't made before the DD, the total minimum payment will be taken as the DD is actually applied for a day or two before it leaves the account.


But as zx has said, the SO needs to be within a certain window. I would say the window would need to be between the DD leaving and the next monthly statement being produced, but it's always worth speaking to your CC provider to check.

adindas

MoneyMission2015 wrote: »

I don't pay minimum payment, I have a fixed amount DD set up on my 0% cards, which is way above the minimum anyway but I know that when I have made extra payments to cards in the past they have always told me that as long as the extra payment isn't made before the DD, the total minimum payment will be taken as the DD is actually applied for a day or two before it leaves the account.


But as zx has said, the SO needs to be within a certain window. I would say the window would need to be between the DD leaving and the next monthly statement being produced, but it's always worth speaking to your CC provider to check.

As you could see from my post Ii am fully aware of this method.
I just do not bother to do this as I will be loosing out each month and also not worthy of consideration. Keep in mind with 0% the balance keep reducing each month due to minimum payment made each month. Not to mention the time to keep track the payment.

Minimum payment by DD + SO £1 might be a better way if it could actually work without surprise.

I wonder whether someone has actually made DD minimum payment + £1 SO. So far only theoretical assessment, not first hand experience. What I also notice with some credit cards, the date of the DD is taken keep changing almost each month so difficult to track it.

I saw MSE suggested this theoretical method minimum payment +£1 initially and then later removed this suggestion. It might be because it is not working well or too complicated compared to the benefit you will get.

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