Natwest Credit Card - Small Balance Write Off Query

JamesPeter

I have two Natwest Credit cards, one is a rewards card which I use all the time and pay off every month.

The other is a low rate 9% apr card which also gives 0% on overseas spend. I normally only use it when on holiday (so not much use currently) and normally pay it all off when I return from holiday.

However, rather than let the second card ‘go dormant’ as I am currently not travelling, I signed upto a continuous payment authority for 50gb of i-cloud storage at 79p per month.

My intent was to pay the 79p off every time I receive the statement, just to keep it 'ticking along'. 

However, I noticed that no online statement was available this month after the day it should have been ready online. 

On checking my recent transactions, the 79p has been debited to i-cloud, but the following day (which would have been statement producing day) there is an entry which says:

SMALL BALANCE WRITE OFF – and shows the 79p as being paid - by Natwest!

My credit card balance is nil and my full credit card limit is showing as available. 

Have I hit upon a way of getting my i-cloud membership for free (ie Natwest seem to be paying it for me)?

What I am more concerned about though, is will this affect my credit files at all?  

How much is their ‘small balance write-off’? I would think anything less than £1 but does anyone actually know?

Many thanks.

whitesmith

I believe it is because the admin costs of collecting such small amounts exceed the value. I don't suppose anyone on here will have details of their algorithm - eg how often and under what circumstances they would continue to do it.

It won't affect your credit file but one thing I would consider is if you continue to do this on that card (ie 79p a month only) they may well (probably will?) close it.

I would use it every month for at least one purchase as well as the 79p

JamesPeter

whitesmith said:

I believe it is because the admin costs of collecting such small amounts exceed the value. I don't suppose anyone on here will have details of their algorithm - eg how often and under what circumstances they would continue to do it.

It won't affect your credit file but one thing I would consider is if you continue to do this on that card (ie 79p a month only) they may well (probably will?) close it.

I would use it every month for at least one purchase as well as the 79p

Many thanks.

As I bank with Natwest, I always pay my Natwest credit cards direct from my Natwest current account using online banking, so I can't see how much admin charges are relevant - the credit card statements are online as well so no postal charges etc.

Anyway, I have just put a £50.00 purchase through on the card to show willing (although I would have preferred to use the rewards credit card to get 0.25% back in rewards - 'every little helps' as they say). At least it shows willing I suppose.

I don't particulrly want Natwest to close the card as when (or if) travel starts again, I will be taking full advantage of the 0% on foreign purchases.

Thanks again.

crumpet_man

They would probably give you some notice before closing the card.  
I have a similar thing with a different credit card issuer and auto top up my amazon account £1 every month, it's been working for at least a year.