Best time to clear credit card transactions

GSDMum

Hi

I realise I should have this information to hand, but sadly I don't and a Google search isn't answering my query.

My RBS credit card is now paid off :T and I want to use it for groceries, fuel, and everyday household purchases. I plan to pay off the amount every month before any charges are accrued.

Reason why I'm using the credit card and not my debit card is that I've got a £5k overdraft with my bank, and I want to reduce bank interest charges as much as possible.

Payment to the RBS credit card is due around the 10th of the month.

My question: is the 10th of the month the correct time to clear the whole amount?

Thank you for any advice :beer:

Willing2Learn

Set up a Direct Debit to be paid in full every month, then it will be done automatically for you.

Edit: You need to start tackling your overdraft, as the facility can be withdrawn without notice.

GSDMum

Can I clear the amount every month by a DD even though I don't know what the exact amount would be? I guess I could work on the premise of being a £100 or so in credit with the credit card every month.

We're working on paying off the o/d by next Spring.

Thank you Willing2Learn :beer:

Willing2Learn

GSDMum wrote: »

Can I clear the amount every month by a DD even though I don't know what the exact amount would be?

The DD will be automatically adjusted every month to reflect the outstanding balance on the CC monthly statement. Just make sure you are only spending on the card for stuff that is in your normal monthly budget and then you won't overspend.

Ebe_Scrooge

GSDMum wrote: »

Can I clear the amount every month by a DD even though I don't know what the exact amount would be?

Yes. When you set up a DD, you're given the option of paying the minimum, a fixed amount or the full amount. Just set it up for the full amount, then you can forget about it once the DD is in place - obviously you just need to make sure there's money in your bank to cover the DD. Importantly, make sure the DD IS actually set up - your statement will clearly show whether a DD is in place, but it may take a while to churn through the system. So check your statement carefully, and be ready to make a manual payment if the DD is not yet in place.

You shouldn't run a credit balance on the card - this goes against the T&Cs.

Picard91

GSDMum wrote: »

Can I clear the amount every month by a DD even though I don't know what the exact amount would be? I guess I could work on the premise of being a £100 or so in credit with the credit card every month.

We're working on paying off the o/d by next Spring.

Absolutely There will be an option to pay a set amount each month by DD or for it to automatically adjust

Wishing you the best for the o/d

PRAISETHESUN

As above, set up a DD to pay off in full every month - it will automatically adjust the amount and date in order to make sure it is paid on time, and if it isn't then the DD guarantee will protect you from any bank fees/interest. Otherwise if paying manually, I'd recommend paying a few working days in advance to make sure it is received on time - banks usually provide a recommended time frame for payment on their statements for the various payment methods they accept.

GSDMum

Thank you everyone, I really didn't know a 'variable' DD could be set up. :T

Spoke to a helpful person on the RBS helpline (I miserably failed the online setup ), who explained, and set up the DD.

RBS create a statement on the 16th of the month,triggering payment 15 days later (that's 15 days notice). She confirmed purchases on the card from the 17th will go on the following month's statement - basically around 6 weeks before payment.

Once again this forum has come to my rescue. Thank you! :beer:

Willing2Learn

Hello again

Make sure that DD is properly set up before your next statement, as it can take a while. If it is not set up in time, then you will have to make a manual payment on the next statement.

If the DD has been fully set up, it will clearly say so on your statement.

[Deleted User]

Not all direct debits adjust now when manual payments are made in addition - I believe Halifax don't do this.

As for the others, you need to make the payment within 4-5 days of the DD being due otherwise it won't have time to adjust

stehouk

If you are eligible for a 0% purchase card this could be a way of saving money, spend on the card and payback minimum every month, this would release unused money to pay off your'e overdraft, an alternative would be a money transfer card but there are not many around at the moment.