Lloyds bank cashback credit card

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My friend has the above credit card and he has spent near to his monthly credit limit.  He has asked me if he can pay off the current balance so he can continue to use the card as he has paid off the balance early.  I think the answer is yes, but would like to check.

Also does anyone know if there is a limit on the cashback to the monthly credit allowance as he would be spending more than that if he pays off the current balance early?

crumpet_man

You can pay off the balance (or any amount below it) before the statement date.

There is no cap on the amount of cashback paid for qualifying purchases.

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crumpet_man said:

You can pay off the balance (or any amount below it) before the statement date.

There is no cap on the amount of cashback paid for qualifying purchases.

if he pays off the balance, can he then continue to spend on the credit card as he only has £16 of credit left on the card!

molerat

If he pays it off he will have more than £16 to spend.  It is revolving credit, not a monthly limit. Pay it off and it resets however many times you do it.

jay1804

Yes, they can pay off and spend as much as they wish. Have they tried asking for a limit increase?

Marchitiello

Only thing to be aware of with Lloyds is that once the statement is produced, and there is a DD set, whatever amount you are set to pay on that statement, they will still collect it by DD even if you actually pay the full statement before the date of the DD.

Ebe_Scrooge

Yes, you don't have to wait for the statement to arrive, you can pay off any amount at any time.

Bear in mind, if your friend makes a payment now, it won't necessarily hit the account immediately.  It may take a few minutes, it may take a day or so.  These days most payments tend to be pretty much instant, or within a couple of hours, but check that the payment has been applied to the account before trying to spend on the card again.

Also bear in mind - when the statement arrives, you still need to pay at least the minimum (preferably the full amount) as detailed on the statement, irrespective of any interim payments you may have made.

[Deleted User]

Marchitiello said:

Only thing to be aware of with Lloyds is that once the statement is produced, and there is a DD set, whatever amount you are set to pay on that statement, they will still collect it by DD even if you actually pay the full statement before the date of the DD.

This is incorrect, at least as of this year, if you make a payment they will actually cancel the DD for that month, I have had it happen to me when doing BT off the card after the statement is made, they treat that payment as the payment so you can end up doing a manual payment. Halifax did once do what you describe and put my card in credit after doing a BT post statement but they have changed it

Marchitiello

Deleted_User said:

Marchitiello said:

Only thing to be aware of with Lloyds is that once the statement is produced, and there is a DD set, whatever amount you are set to pay on that statement, they will still collect it by DD even if you actually pay the full statement before the date of the DD.

This is incorrect, at least as of this year, if you make a payment they will actually cancel the DD for that month, I have had it happen to me when doing BT off the card after the statement is made, they treat that payment as the payment so you can end up doing a manual payment. Halifax did once do what you describe and put my card in credit after doing a BT post statement but they have changed it

I stand corrected if that is the case. I used to have the Lloyds Avios duo (MasterCard/Amex) that then became only Avios MasterCard and then further changed to the Cashback card in question but I have closed it around 6 months ago as I never used it (had better cashback or rewards options with my other cards).

I always had the DD to pay in full and years ago they used any manual pre payment done at least 3-5 days before the DD was due to modify the amount taken by the DD but then they changed it so that once the statement was produced, the DD would always come out as per statement, no matter any manual payment made.

What you describe means that they have changed back to the previous set up

[Deleted User]

Marchitiello said:

Deleted_User said:

Marchitiello said:

Only thing to be aware of with Lloyds is that once the statement is produced, and there is a DD set, whatever amount you are set to pay on that statement, they will still collect it by DD even if you actually pay the full statement before the date of the DD.

This is incorrect, at least as of this year, if you make a payment they will actually cancel the DD for that month, I have had it happen to me when doing BT off the card after the statement is made, they treat that payment as the payment so you can end up doing a manual payment. Halifax did once do what you describe and put my card in credit after doing a BT post statement but they have changed it

I stand corrected if that is the case. I used to have the Lloyds Avios duo (MasterCard/Amex) that then became only Avios MasterCard and then further changed to the Cashback card in question but I have closed it around 6 months ago as I never used it (had better cashback or rewards options with my other cards).

I always had the DD to pay in full and years ago they used any manual pre payment done at least 3-5 days before the DD was due to modify the amount taken by the DD but then they changed it so that once the statement was produced, the DD would always come out as per statement, no matter any manual payment made.

What you describe means that they have changed back to the previous set up

Yeah it was updated a little while ago, I had a statement produced for say £400, did a big spend after, then did a BT off it but they didn't take the DD, so I rang up and asked and they said that if you do a manual payment they won't take the DD so I did a manual payment for the DD amount as well to clear the balance 

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jay1804 said:

Yes, they can pay off and spend as much as they wish. Have they tried asking for a limit increase?

he only has £1,000 credit limit because he earns 24k and this is his first credit card.  i have told him to ask them for an increase after he has used the card for 6 months and they can see that he has been paying off the money without any issues, and to continue to ask for an increase every 6 months until the credit gets to a higher figure, like 4k.

this is what i used to do when i first took out a credit card and slowly build up the credit.