Help with CC Payment!

K80_Black

You won't be able to avoid interest by clearing in full after the payment date as you are trying to do. The only way to do something similar to what you're currently doing is to pay it off in full BEFORE the payment date, and have the minimum direct debit as a backup for if you forget or get hit by a bus. Doing this risks both you paying in full and the direct debit being taken if you don't leave enough time for the manual payment to clear before they try to take the DD.

As you seem to be the forgetful type, I'd recommend changing the direct debit to full amount to avoid this happening again.

As to what will happen now - not much. You'll have a marker for an overlimit on your next report which will be visible to other lenders for six years. This may affect your ability to get credit in the future - but only by a tiny amount. If you use the card well in the future and this is your only blemish, very few lenders would see it as a problem. Just don't make a habit of it! Edit: just checked your posting history, I assumed you were new to credit. This will be one of the least serious markers on your report.

If you corrected the overlimit on the same day, it may be worth calling them to ask if they would drop the fee as a goodwill gesture. Be polite, they don't have to, but many lenders can be sympathetic to new users making an error.

Lastly, you ticked a box saying that you read and understood the rules for your credit card. I know almost nobody reads them for software, but for financial products, it's really important to.

xlnc99

One question -

My statement is due on the 20th each month from the 19th to 20th every month. My DD is the 5th.
When do this CC report my status to the and balance to the CRA? When the DD goes or on the statement date?

So if i clear the full balance on the 5th every month then use the CC from the 5th to the 20th then on my statement it will be showing a balance and not zero as my transactions will appear. So how do i get them to report 0 balance each month?

I was over limit by 23 pound, 12 pound of that was for late FEE!

In terms of the marker, i take it you mean the balance will show as over limit rather then a marker of late payment. I paid on contractual amount on time by DD. I think a marker is the wrong word? It will just display my balance as being over my limit for that month? Is that right?

K80_Black

You can't get them to report a 0 balance every month unless you do not use the card, or pay it all off before they produce the statement. If you're trying to build a positive credit history, you want a balance every month, that you pay off in full every month.

xlnc99

Ok so there is no way to have a 0 balance reported on a credit card every month unless u dont use it at all for that one month?

So what difference apart from the interest rate/charges does it make paying in full or half or min etc each month if there will still always be a balance showing on your credit report.

More confused now!

K80_Black

Look. A credit card is intended to borrow money on for short periods of time, and paying it back.

If you want it to show you never having anything to pay, how will people know if you can and will pay it back?

This is what lenders are looking for. Not that you have no debt, but that you keep your promise to pay it back.

Lenders can see whether you have paid it back in full or not. For example, one month will show a balance of £200, the next month will show a credit of £200. You can view both balances and credits on your report.

xlnc99

oh ok i get it. So a lender will be able to see if you paid back in full every month?

That was the point i was trying to make. I wasnt aware of that. So even though it shows a balance if you pay of in full each month then lenders will know you have made full payments each month

chattychappy

Ben8282 wrote: »

How interesting. We live and learn.
I have been looking at the summary box for the Aqua card and guess what. They only give up to 48 days interest free credit.

I've had cards that give less. I don't think it is uncommon. Certainly not a cause for complaint provided it's clear, as you say.

OP:
1) A one-off issue such as this on your credit file will not be a problem after a couple of months have passed.

2) If you are not paying in full, then interest runs from date of transaction to date payment arrives. So you should pay as much as you can as soon as you can. DD might be useful in case you forget, but it does mean that you could pay more interest by having funds sitting around in your current account whilst waiting for DD day. OR if you are certain you can pay in full each month and like DDs why not change the DD to full payment?

3) They might refund the £12 fee for a first of "offence" if you ask nicely. Personally I think these auto-applied fees are probably illegal anyway unless they've actually incurred a cost (eg by phoning you up or sending a letter). A long time ago, the OFT (the then regulator) ruled they wouldn't intervene for charges of £12 or less so that has become a defacto standard despite their saying each case depends on its merits. So try the nice approach if the £12 bothers you.

4) After the dust has settled, consider applying for another card or ask for a limit increase so you are not sailing close to the wind. But ONLY do this if you think it won't encourage you to spend more than you need to.

xlnc99

Thanks for the response guys,

I think the main lesson i have learnt here is to make sure i never go above 90% of my credit. That 10% i should save for possible interest that may be added on. So yes i will try now to pay in full by DD but if for some one off reason i need to use alot of my CC and wont pay the full back until the following month am i right in assuming if i stick below 90% of my CC then i wont get charged or go over my limit as the 10% will more then cover any interest or charges from the statement.

xlnc99

update: They have refunded the 12 pound charge! Thanks for the advice

He also explained that my report will be sent at the end of the month so it wont show me being over the limit if i am not at the end of the month.

Im not sure how much truth there is in this as i would assume they show the balance at the time of statement produced and not in real time.

[Deleted User]

Ben8282 wrote: »

How interesting. We live and learn.
I have been looking at the summary box for the Aqua card and guess what. They only give up to 48 days interest free credit.
https://applynow2.aquacard.co.uk/product-summary?productIdentifier=9100694AA000DSE00100
Very bad.

You have every right to be displeased with this. I certainly would be. I have never previously encountered such a short period and was genuinely surprised when I discovered this information.
However, it does not excuse you failing to make full payment before the payment due date and therefore you have no valid grounds for complaint.

Why is it "very bad" that OP failed to read T's and C's again like they did with the 118118 card?

There's only one person at fault here, and it's not Aqua.....