Just been accepted - can I set up direct debit later?

doriangray23

As the title says, I've just been accepted for 15 months 0% purchase card. When it asked what limit I'd like I said £3,000, and the confirmation page suggested that's what it would be.

It's asking me to set up a direct debit, but I don't want to do that until I've actually spent money.
Can I set that up later, or is it better to do now then the details are accurate?

WillPS

You don't have to set up a DD at all if you don't want to, you can pay manually or by standing order each month and/or set up a DD later.

If you don't set up a DD or Standing Order straight away then be very sure to check that at least payments are being made on time because if you miss one your promotional rate will likely be taken away. If you set up a DD later then make sure you know when it becomes effective; depending on the timing/issuer it might not be until the next statement is generated.

doriangray23

WillPS said:

You don't have to set up a DD at all if you don't want to, you can pay manually or by standing order each month and/or set up a DD later.

If you don't set up a DD or Standing Order straight away then be very sure to check that at least payments are being made on time because if you miss one your promotional rate will likely be taken away. If you set up a DD later then make sure you know when it becomes effective; depending on the timing/issuer it might not be until the next statement is generated.

Thanks for such a quick response!

This is a silly question, but since there are no fees that means I don't have to start paying anything back until I've actually spent it...doesn't it?

I will divide my spend (one item) by the months and pay it off early, by direct debit, I'm just hesitant to set it up in case they take it before I've actually bought the item. 

Phoenix72

What makes you think they will take a direct debit if you don't owe anything?

Phoenix72

'True' moneysaving on a 0% card would be to pay the minimum each month and put the extra you were intending to pay into a regular saver and earn some interest.

If you don't trust yourself to do that just pay it in equal instalments to ensure fully paid off by the end of the deal.

doriangray23

Phoenix72 said:

What makes you think they will take a direct debit if you don't owe anything?

Just had an issue with Barclay's doing just that. However, it was also an education. Different circumstances (nothing CC related - I paid off a bathroom early, but they'd already set up the DD and took the money anyway) but I endeavour to avoid anything similar with this by clearing the owed amount a couple of months ahead.

Phoenix72 said:

'True' moneysaving on a 0% card would be to pay the minimum each month and put the extra you were intending to pay into a regular saver and earn some interest.

If you don't trust yourself to do that just pay it in equal instalments to ensure fully paid off by the end of the deal.

That makes sense - I'll get it figured out

Phoenix72

Depending on the card some will still take the direct debit if you make a manual repayment. If you are opting for DD I'd set it up now as if you do it after your first statement it will probably be too late for the first payment to be taken. Plenty have been caught up by that.

DullGreyGuy

doriangray23 said:

WillPS said:

You don't have to set up a DD at all if you don't want to, you can pay manually or by standing order each month and/or set up a DD later.

If you don't set up a DD or Standing Order straight away then be very sure to check that at least payments are being made on time because if you miss one your promotional rate will likely be taken away. If you set up a DD later then make sure you know when it becomes effective; depending on the timing/issuer it might not be until the next statement is generated.

Thanks for such a quick response!

This is a silly question, but since there are no fees that means I don't have to start paying anything back until I've actually spent it...doesn't it?

I will divide my spend (one item) by the months and pay it off early, by direct debit, I'm just hesitant to set it up in case they take it before I've actually bought the item. 

How can they take anything if you dont owe anything? If they did due to an IT failure then you could use the DD guarantee for it to be clawed back but it wouldn't be only you impacted and they'd be correcting the IT failure and refunding peoples anyway. 

Even if you set the DD to take £300 a month if your balance is below this then it will reduce the DD automatically to the statement balance. If the statement balance is 0 then no payment will be taken.

As others have warned, if you make a payment before the DD is taken different companies take different responses to what happens to the DD. I've learnt the hard way that you are better off doing the additional payment post the DD to avoid confusion. 

CliveOfIndia

Just set up a DD now for the minimum payment, that's simplest and safest.  If there's no balance owing on the card then no payment will be collected.

The only time it can get confusing is if you've got a DD set up, and you make an interim payment as well.  Some banks will still take the DD, some won't - plus, it also depends on the timing of the interim payment (DD collection schedules are usually created a few days before the DD is actually due).

But that's all over-complicating things, to be honest.  When you're on a 0% promotion, just set up a DD for the minimum amount, and make sure you put money aside somewhere to clear the full balance when the promotional rate expires.

One thing to double-check - is it 0% on all purchases for the whole 15 months, or only on purchases made during the first 3 months or whatever?  It's more common when you're talking about balance transfer cards for the transfer window to be restricted to the first 3 months, usually on purchase offers it's applicable for the duration of the promotion.  But it's worth just double-checking.