First credit card question.

HarryNewsome

I am looking to get my first credit card to help spread a large purchase over a couple months. I am currently looking at the Virgin Money - 27 months 0% on spending as I have been 100% pre-approved via the tool on this site.

I am reading online that I should setup a direct deposit to pay the minimum monthly payment so that I do not miss one and lose the 0% promotion - understandable. But my question is do I still need to pay the minimum monthly payment if I do not have any debt on the card? For example

Month #1 I make a large purchase of £600 and pay £200 into the credit card.
Month #2: Repay £200.
Month #3: Repay £200.
Month #4: No debt on card. <--- would I still need to pay the minimum monthly payment here?

Thanks!
Harry.

Helvetica_Van_Buren

HarryNewsome wrote: »

I am looking to get my first credit card to help spread a large purchase over a couple months. I am currently looking at the Virgin Money - 27 months 0% on spending as I have been 100% pre-approved via the tool on this site.

I am reading online that I should setup a direct deposit to pay the minimum monthly payment so that I do not miss one and lose the 0% promotion - understandable. But my question is do I still need to pay the minimum monthly payment if I do not have any debt on the card? For example

Month #1 I make a large purchase of £600 and pay £200 into the credit card.
Month #2: Repay £200.
Month #3: Repay £200.
Month #4: No debt on card. <--- would I still need to pay the minimum monthly payment here?

Thanks!
Harry.

No, you can have a direct debit in place, but a payment will only ever be taken when there is a balance on the card. You don't have to cancel the direct debit or anything like that.

Let me know if this isn't clear enough.

HarryNewsome

Oh brilliant. So for the sake of clarity - I can setup a direct debit and when there is debt on the card it will take the minimum monthly payment and when there isn't any debt on the card it will skip that direct debit payment? If so, do I need to take any extra steps to set up the direct debit or is that normal behavior?

HarryNewsome

Okay, Thank you both for your advice!

One last question if I may.

I (stupidly) did not change my address on my bank when I moved from my parents home over a year ago. Would this effect me applying for a credit card? I worry that if I change it now it might look suspicious that I changed my address right before applying for a card?

Superscrooge

Lots of people move house and then successfully apply for credit so there is no reason why moving house would 'look suspicious'

When you complete a credit card application you have to give your current address and how long you have lived there. If less than three years, you will be asked to give your previous address. So I wouldn't anticipate a problem.

Make sure you get yourself added to the electoral roll at your new address.

Sncjw

Also it's best not to buy something then pay it off straight away like even £200 of the debt as your account could go into positive.

Also a month may differ to everyone else depending on the date you open the card.

I had a direct debit but I pay it off in full anyways I manually do it to ensure payment goes through. I do it through online banking.