Question about credit card payments?

nicetomeetyou

I have just got a vanquis credit card. When I got the statement it says I have to pay minimum payment by certain date. I pay £100 off and when it clears I spend then spend £100 leaving me with a £2 balance again but I have bet the minimum payment, Does that count as paying the minimum amount so if I don't pay anything further until the next statement I won't get any non payment issues?

[Deleted User]

Where does the £2 balance come from?

Anyway if you spend £100 then receive your statement and pay back that £100 then you can carry on spending again until your next statement and repeat each statement month.

jonesMUFCforever

Leaving £2 outstanding after month 1 means no interest free purchases in month 2 - clear the balance in full every month if you can.

18cc

When you get your statement it will tell you the minimum amount to pay and the date by which it must be paid. Make sure you pay that amount once you get the statement - ideally a few days before the date stated to allow things to clear etc. Set up a minimum payment DD if you can - this will ensure the minimum is taken automatically and you won't have to remember each month.

As above, if you don't pay the whole statement balance you will be charged interest on the full statement balance even if you pay some off. So pay it all off if you can. If you pay more than the minimum balance off they won't take the DD that month as you will have already paid the minimum.

Terry_Towelling

nicetomeetyou wrote: »

I have just got a vanquis credit card. When I got the statement it says I have to pay minimum payment by certain date. I pay £100 off and when it clears I spend then spend £100 leaving me with a £2 balance again but I have bet the minimum payment, Does that count as paying the minimum amount so if I don't pay anything further until the next statement I won't get any non payment issues?

I'm not sure I understand any of what you are saying here. You're not saying you paid £100 before the statement arrived are you? It doesn't look like that but that's the only way I can make sense out of it Can you please try to clarify it for me?

And, like Gary Dexter says, where does this £2 balance come from?

Ben8282

If you read the OP carefully the OP does not say that the initial spend was £100. The OP mentions repaying £100 and then spending it (the £100) again. I am guessing here that the original spend was £102.
This would meet the minimum payment requirement yes but assuming that the original spend was £102 it would be very foolish as by leaving the £2 outstanding you will be paying interest where if you were to pay £102 (the assumed full balance) then you would not be charged interest.

enthusiasticsaver

I am not sure I follow you either. Are you saying £2 is the minimum payment on a £100 balance? Obviously if you are paying £100 off in full then you don't need to worry about the £2 even if you spend £100 again on it the following month. The minimum payment is just to let you know the least amount you have to repay monthly. Ideally you would pay off the balance in full so you don't pay interest.

Terry_Towelling

Ben8282 wrote: »

If you read the OP carefully the OP does not say that the initial spend was £100. The OP mentions repaying £100 and then spending it (the £100) again. I am guessing here that the original spend was £102.
This would meet the minimum payment requirement yes but assuming that the original spend was £102 it would be very foolish as by leaving the £2 outstanding you will be paying interest where if you were to pay £102 (the assumed full balance) then you would not be charged interest.

I get what you are saying, Ben but if OP got a statement and paid £100 (let it 'clear') and then spent £100 again, why would they then have a £2 balance and why would there ever be an issue with not meeting the minimum payment?

Also, why are they asking whether paying the £100 counts as paying the minimum? Either it does or it doesn't and OP must be capable of working that out because it's detailed on the statement anyway.

The only way I can make sense out of such a question is if they meant they'd paid the £100 before being statemented. Clearly that wouldn't count as making the minimum payment because the statement (when it is produced) will then ask for a minimum payment and will not consider the early payment as relating to the statement.

Nicetomeetyou, can you please redraft your post so that we (or at least, I) can understand it? - Sorry.

SnowTiger

OP has a credit limit of £250 and has posted previously about their Vanquis card.

nicetomeetyou wrote: »

I read here that if you pay the balance off in full when statement comes you incur a 0% interest fee, this is false. You only incur 0% interest after two full months balances have been paid in full. I know this as the first month I spent all my balance of £250 and paid it off fully when my statement come and still got hit with £13 interest fees.

I'm guessing they sail very close to their limit.

OP seems to have an abundance of money. Perhaps using a debit card would be more appropriate for them. Many people find credit cards confusing.

nicetomeetyou wrote: »

I'm on ESA and DLA. I find the £6000 saving limit too little. I wish it would be higher. At the moment when it nears the £6000 threshold my appointee says I have to spend some of it or I get penalised, there is only so much bedroom furniture you can buy from join lewis already which is already replacing good furniture. I end buying a new iMac that replaces an already good 2017 iMac 27''just because I find it difficult to find anything to spend it on. Its not only me but other service users in supported living that has this problem.

nicetomeetyou

Thank you for your replies.

I didn't make my first question very clear, sorry about that. I wanted to know if I've spent all my £250 credit and then get a statement that says £10 minimum payment needs to reach them by 16th May and I go on the vanquis app and pay £100. Would that mean I have met the minimum payment even if I then spend the £100 again straight away?

SnowTiger wrote: »

OP seems to have an abundance of money. Perhaps using a debit card would be more appropriate for them. Many people find credit cards confusing.

I don't really have a need for a credit card. I only wanted one to build my credit rating up so when my appointee continues with his refusal to purchase me the £4.250 Omega Seamster I want (even though I have more than enough money!!) I'll then stick it on a finance agreement than have him pay the monthly instalments. Same case if I want to travel abroad, I won't have to jump through hoops.

[Deleted User]

Yes If you pay £100 after the statement has produced then spend the £100 again it will count as payment still.

You also build a credit history not a rating.

I do find the watch comment rather strange and somewhere unnecessary to the subject at hand though.