Direct debits for switching bonuses

IvanDP

As i am still fairly new to this bank account switching, I have just read the MSE article to give me more of an idea.

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/

one bit i could do with a little clarification on is regarding direct debits.

Taken from the article:
"Some switching bonuses or perks require 'active' direct debits. What does this mean?
An active direct debit is one that has paid out in the last 13 months or – if it has never paid out – is less than 13 months old.

Direct debits have this dormancy rule in place, so old direct debits can remain active even if you're not paying out on them every month in case they're needed again, or they're there for annual payments. But after 13 months, your bank may remove them from your account or mark them as inactive."

Would I be right in thinking, that if I set up direct debits to pay credit card bills on a couple of dormant credit cards (£0 balance on the cards, and currently not being used), these would count as "active" direct debits?

Apologies if this question has been asked before, as i said, I'm still rather new to all this.

Thanks in advance

:beer:

colsten

IvanDP wrote: »

Would I be right in thinking, that if I set up direct debits to pay credit card bills on a couple of dormant credit cards (£0 balance on the cards, and currently not being used), these would count as "active" direct debits?

They'd be 'active' as per the definition in the article you quote, i.e. for a max of 13 months. Whether 'active' on its own is good enough for your offer(s) is a different question - you need to refer to the offer T&Cs.

soulsaver

@Ivan
MSE definition could be misunderstood:

Is it a general question? Or have you a particular switch offer in mind.

PRAISETHESUN

Pretty much all banks I'm aware of that need DDs for switch incentives only require "active" DDs as per the definition above. For on-going rewards, then this is where the T&Cs of the bank matter. Halifax Rewards and Club Lloyds for example require your DDs to pay out every month, whilst others may only require that they remain "active". In any case I'd advise to check the terms of the particular offer you are interested in.

colsten

soulsaver wrote: »

MSE definition could be misunderstood.

How?

............................

badger09

IvanDP wrote: »

Would I be right in thinking, that if I set up direct debits to pay credit card bills on a couple of dormant credit cards (£0 balance on the cards, and currently not being used), these would count as "active" direct debits?

Apologies if this question has been asked before, as i said, I'm still rather new to all this.

Thanks in advance

:beer:

colsten wrote: »

They'd be 'active' as per the definition in the article you quote, i.e. for a max of 13 months. Whether 'active' on its own is good enough for your offer(s) is a different question - you need to refer to the offer T&Cs.

In addition to what colsten said, there may be another flaw in your proposal.

Some banks do not show a new DD as being 'active' until it has been paid at least once. I can't remember which banks:o but for those, your dormant credit card DDs wouldn't work until you have used the card and had a payment by DD taken. (So no longer dormant)

IvanDP

Thanks for the replies guys.

@Soulsaver it was just a general question, and a thought about being able to meet switching requirements without having to move any of my existing direct debits.