Credit Card statement arrived but due a refund soon

dantendo

I received my credit card statement and have to pay around £175. But I am due to receive a refund of £85 from a retailer over the next few days.

My account has a minimum payment of £5, can I pay them £90 on my card without owing them interest, I always pay the full balance but as I am getting a refund, don't really want to be in credit.

[Deleted User]

You can pay as much of the minimum as you want, although putting heavily into credit can be a problem.

If you normally pay in full, you need to check how your lender treats refunds and when it would be applied.

Safest is to pay in full. A small credit wouldn't take long to spend.

dantendo

Appreciate the advice, I'll just pay it off in full but the £85 I will end up in credit might end up being in my account for several months as I am really trying to cut back on my spending.

Yellow_mango

I’d have the direct debit set up to pay balance in full. Then it’s up to them whether they take the £90 or the £175. I’d expect it to be the £90, but keep the full amount available just in case.

enthusiasticsaver

When is the payment due and when are you due the retailer refund? If the whole balance is not repaid by the due payment date then you will be charged interest so if the retailer is late with the refund that could cause problems. If the payment is not yet due I would wait for the retailer refund to show then pay it.

dantendo

enthusiasticsaver wrote: »

When is the payment due and when are you due the retailer refund? If the whole balance is not repaid by the due payment date then you will be charged interest so if the retailer is late with the refund that could cause problems. If the payment is not yet due I would wait for the retailer refund to show then pay it.

I wasn't aware I could do that.

Payment is due by 5th July, retailer refund could take up to 7 working days. If I do get my refund by then and only pay off the outstanding balance of £90, could they claim I did not pay the full amount and charge me interest?

Karonher

You may want to cut back on spending but surely you buy food? I cant see £85 lasting much more than a few weeks for most people.

DigitalDevil

Use the credit on “essentials” which you would usually buy from your current account (food, fuel, other transport costs etc etc).