Barclaycard billing/payment

t33

I've only just started using my Barclaycard so beginner question to get clarification.  I used it almost to its max credit limit abroad on June 5th and my statement says payment will be taken 22 July.  I understood that it was a monthly payment (within the same 4 days of the month as per BC).  It's not particularly a problem, but was thinking if I wanted to use it again (I generally use it for big outlays abroad, eg hotel bill, flights) I have no leeway.  Of course I can pay it via the Pay Now option, no problem.  Or have I missed something?

Was curious as to the billing and payment schedule which seems odd to me. 

Thanks.

easyasonetwothree

From the end of the billing period, you get a month(ish) to pay for the previous month's charges. So anything you bought between (say) 22/5 - 22/6 needs to be paid by 22/7. If you need to use your card again before the 22/7 and you've maxed it out, you'll need to pay it off first.

eskbanker

t33 said:

I've only just started using my Barclaycard so beginner question to get clarification. 

[...]

I generally use it for big outlays abroad, eg hotel bill, flights

How long have you had the card for?  It sounds like the credit limit is quite low for your needs but in general companies are reluctant to countenance increases within the first six months....

t33

Thanks for simple answer, I should have figured that out for myself, obviously not got brain engaged.  But thanks that makes it make sense.

I'm going to keep track of my spending pattern and up my credit limit (think you can DIY online with Barclaycard) if needed.

DullGreyGuy

Just be aware that what happens to the direct debit if you make a payment before it's collected varies significantly between banks and especially if you make the payment just before the DD is taken. 

Can't remember which bank it was now but certainly with one it used to be the case that if you make any payment materially before the DD they simply skip that months DD so if you had a £1,000 balance, had the DD set to pay the full statement balance and made a £200 repayment the week before the DD rather than it correcting to £800 and so you still dont pay interest instead it takes nothing and so you pay interest on the whole balance. 

On the flip side, with another bank were you to pay the £200 immediately before the DD then the DD would still be for the full £1,000 which could cause problems for some peoples current account but also put the card in credit 

Superhoopza

DullGreyGuy said:

Just be aware that what happens to the direct debit if you make a payment before it's collected varies significantly between banks and especially if you make the payment just before the DD is taken. 

Can't remember which bank it was now but certainly with one it used to be the case that if you make any payment materially before the DD they simply skip that months DD so if you had a £1,000 balance, had the DD set to pay the full statement balance and made a £200 repayment the week before the DD rather than it correcting to £800 and so you still dont pay interest instead it takes nothing and so you pay interest on the whole balance. MBNA, 118 Money and Capital One do this. Barclaycard and Santander deduct the payment from the DD amount so long as it is paid a few days before the DD.

On the flip side, with another bank were you to pay the £200 immediately before the DD then the DD would still be for the full £1,000 which could cause problems for some peoples current account but also put the card in credit 

Providers listed above

Superhoopza

Superhoopza said:

DullGreyGuy said:

Just be aware that what happens to the direct debit if you make a payment before it's collected varies significantly between banks and especially if you make the payment just before the DD is taken. 

Can't remember which bank it was now but certainly with one it used to be the case that if you make any payment materially before the DD they simply skip that months DD so if you had a £1,000 balance, had the DD set to pay the full statement balance and made a £200 repayment the week before the DD rather than it correcting to £800 and so you still dont pay interest instead it takes nothing and so you pay interest on the whole balance. MBNA, 118 Money and Capital One do this. Barclaycard and Santander deduct the payment from the DD amount so long as it is paid a few days before the DD.

On the flip side, with another bank were you to pay the £200 immediately before the DD then the DD would still be for the full £1,000 which could cause problems for some peoples current account but also put the card in credit 

Providers listed above

Ignore that I misread what you said.

What I meant to say is:

MBNA, Cap One and 118 still take the full DD payment regardless of any prior payments. I've had instances where I've paid the DD amount manually a good few days before, to save more interest but the DD amount was taken so I paid double that month.


Barclaycard and Santander deduct the payment amount from the DD.

Nebulous2

Barclaycard is also very good at flagging up what will happen. I have a DD set, but pay the full amount manually most months. 

It will tell me - if you make this payment your DD will not be taken. Then after the payment is made it will say, as you've made a payment of xxxx your DD will not be taken this month. 

Nasqueron

I find Barclaycard chop and change the DD date which is annoying, it's usually 20th for me but randomly it was 24th this month. They do send an email telling you the day it will go in advance though

zagfles

Nasqueron said:

I find Barclaycard chop and change the DD date which is annoying, it's usually 20th for me but randomly it was 24th this month. They do send an email telling you the day it will go in advance though

It's not random, what seems to happen is BC only issue statements on working days and the DD is 25 days later but if not a working day then the next working day. So the dates can get pushed back by either, or both, the statement date and/or the DD date falling at a weekend or bank hol. Plus there's variable month lengths of course. 

Why they only use working days when it's all done by computer is beyond me but that seems to be the way most banks work. 

Nasqueron

It's annoying even if that is the logic - every other card I have is always the same date unless it falls on a weekend in which case it's the Monday, except once with Santander who brought it forward once so it was early.