how to make more than the minimum payment

YorkshireBoy

Anthorn wrote: »

If all that is true why do CC companies and banks allow a DD which pays only the minimum payment. Are they just sucking us in so that we unwittingly have bad credit?

Because everyone, now and again, might have a heavy spending month (car insurance for example) or a low earning month (off sick for example), and so a month or two of minimums might be useful. However, 3,4,5 or more continuous months of minimums could now be highlighted as 'in financial distress'...because why would you incur interest unnecessarily?

There is also my previous question so far unanswered, "Delving into this very strange negative marker which I have never heard of before: If I pay £1 more than the minimum payment then I won't get the negative marker because ... er ... I've paid more than the minimum payment?"

Yes. And customers struggling will make use of this 'feature' if they're smart!

Anthorn

Sorry doesn't ring true. Direct Debit is a regular payment not just a one-off or just for a month or two.

Take a look at my signature: Either it's all lies or paying just the minimum payment and paying interest works!

YorkshireBoy

Anthorn wrote: »

Sorry

Don't apologise. Read it again and do some research.

doesn't ring true. Direct Debit is a regular payment not just a one-off or just for a month or two.

They allow a minimum payment. How you choose to pay is down to you. Or are you saying you'd be happy for them to disallow minimum DDs but still allow minimum payments by all other means?

Take a look at my signature: Either it's all lies or paying just the minimum payment and paying interest works!

I'm not sure what I'm supposed to be seeing, but you'll never convince me, or anyone else on here I'd imagine, that paying (unnecessary) interest "works"...as was pointed out to you recently...by lots of people.

I think I'll leave it there.

Anthorn

YorkshireBoy wrote: »

Don't apologise. Read it again and do some research. ;)They allow a minimum payment. How you choose to pay is down to you. Or are you saying you'd be happy for them to disallow minimum DDs but still allow minimum payments by all other means?I'm not sure what I'm supposed to be seeing, but you'll never convince me, or anyone else on here I'd imagine, that paying (unnecessary) interest "works"...as was pointed out to you recently...by lots of people.

I think I'll leave it there.

There you go go. Straight from the horse's mouth. Or at least MSE's mouth.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

m4rc

Anthorn wrote: »

There you go go. Straight from the horse's mouth. Or at least MSE's mouth.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Which bit? Martin always recommends paying off the full amount, I've not heard him say pay the minimum, does it say that on the link? He does recommend DD payments, that's the best way of never forgetting to pay of course, but the DD should pay the full amount off. Lot of text on that page, not sure what part you wanted to point out.

Anthorn

m4rc wrote: »

Which bit? Martin always recommends paying off the full amount, I've not heard him say pay the minimum, does it say that on the link? He does recommend DD payments, that's the best way of never forgetting to pay of course, but the DD should pay the full amount off. Lot of text on that page, not sure what part you wanted to point out.

How about:

Credit card companies may reject you for always repaying cards in full.

You might feel like a dream punter, but for credit card companies you're a nightmare. If they spot this trend, you could be rejected. The most profitable customers are those perpetually in debt, never defaulting, but always meeting the minimum repayment.

Pay off in full every month, don't use your cards enough, or always shift debt to 0% cards, and if they can spot you (it isn't always that easy), a few may reject you.

It's all about profit. If you only pay the minimum payment and pay interest you're a dream punter.

King_Of_Fools

However from:
http://www.moneysavingexpert.com/credit-cards/minimum-repayments-credit-card

BEWARE, DANGER! Borrow £3,000 at 21 and you'll be 50 before it clears! That's what happens if you just make minimum credit card payments - their evil genius can lock you in perpetual debt, boosting banks' profits.

takman

Anthorn wrote: »

How about:


It's all about profit. If you only pay the minimum payment and pay interest you're a dream punter.

Well I have always paid off my balance in full for years and years and I have never been turned down for any credit card. Just my Halifax Clarity Alone has an uncessarily high limit of £10,500 so that just shows paying off in full is in no way a negative!.

You seem to forget that everytime you spend on your credit card that they make money and the more you spend the more money they make. So making lots of purchases each month means they make money and paying it back means they always get their money back which is a big positive for them.

There is no point in paying the minimum payment and paying interest because your just wasting money and is not money saving at all!.