credit card Minimum Payment Understanding

Addy77

Morning Guys,

I recently received an Aqua Credit card for building my credit history and i got 450£ limit and used 61£ so far in 10 days and i set up direct debit for full payment but i got an email from them saying they will take £5 on 5th April as minimum contractual payment and then the full amount of 61£ will be taken on around 20th for a full payment direct debit i don't understand why dont they take 61£ instead of £5 , i thought if i pay all in full i dont get charged interest, is this £5 interest ? seems like a lot for £61. Can someone explain this to me thanks.

[Deleted User]

You won't pay interest if you clear in full, unless you have cash transactions. And even if you do, interest is not paid separately.

Give them a call for clarification.

Willing2Learn

It sounds like they are automated emails. You will not be charged any interest if the DD is set up to take the full payment.

Beware though, sometimes the first DD transaction does not work. You need to double-check that the DD is set up correctly by looking at your statement. If you cannot find any reference to the DD on your statement, then you may need to make a manual payment.

Addy77

Thanks for the quick replies Guys, i checked direct debit is definitely set up. This is their email

Please be advised that as per statement printed on 19 March 2019 your total outstanding balance was £61.19 with a contractual minimum payment of £5.00 due on 5 April 2019.
Further be advised that a Direct Debit is set on your account to collect the full amount on the payment due date of each month.

Please ensure that sufficient funds are available in your bank account to avoid default charges being applied to your account.


Thanks

nick74

Based on that email, they are going to take a direct debit for the full balance. They are only telling you that the minimum payment is £5 for your information, they are not actually going to take a DD for that amount.

The key part is:

Further be advised that a Direct Debit is set on your account to collect the full amount on the payment due date of each month.

eskbanker

Addy77 wrote: »

i got an email from them saying they will take £5 on 5th April as minimum contractual payment and then the full amount of 61£ will be taken on around 20th for a full payment direct debit

Was this a different email from the one you quoted in post #4 (which doesn't mention the 20th)?

Addy77

eskbanker wrote: »

Was this a different email from the one you quoted in post #4 (which doesn't mention the 20th)?

No it was the same email my fault i thought they mentioned the date that's why i copy pasted the actual email to make it clear. Thanks