Credit Card not taking full payment

Katie_Kat

I have set up to pay my credit card "IN FULL" as Martin always advises but I have noticed there is still quite a large balance after taking my monthly direct debit (I have signed up to take the full balance every month). I know it can take a few days for things to clear and I know things can show as pending but that isn't anywhere near the amount that is in my balance. Am I missing something?

la531983

Probably yes. It wont take anything you spend on the card between the statement date and the payment date

So as an example you get your statement 1st September, £300 to be taken 18th September
On the 5th September you spend £100 on some new shoes.
They still will only take £300 on the 18th September.  That £100 goes onto next months. It still counts as clearing the full balance.

p00hsticks

Are you continuing to use the card ? 'Payment in full' will take whatever amount was shown as the balance when the monthly statement was produced. If you continue to spend after the statement date then those transactions will show on your online blance but will be included in the next statement and won't need to be paid until then. 

molerat

Katie_Kat said:

I have set up to pay my credit card "IN FULL" as Martin always advises but I have noticed there is still quite a large balance after taking my monthly direct debit (I have signed up to take the full balance every month). I know it can take a few days for things to clear and I know things can show as pending but that isn't anywhere near the amount that is in my balance. Am I missing something?

It doesn't take "the full balance" but the full statemented balance.  Also with some cards that amount could be reduced if there has been a refund between the statement and payment dates.

lr1277

And for other cards any refunds received after the statement date will not reduce your DD payment.

You need to check the card's T's & C's to see which is applicable in your situation.

Katie_Kat

Hi la531983 - I think they try and make it confusing so you may overspend - or am I being cynical? 

Hi p00sticks - I use the card regularly, a few times a week. On checking it mentions the balance of nearly £800 will be taken next month. My monthly payment was taken on 16th of September even though the statement date is 23d September. However, I haven't spent nearly £800 since even the 16th September. However, after reading other posts it looks like you are almost a month behind by the time your statement comes out. It just doesn't look right no wonder people get confused thinking they are paying it all off monthly. 

Hi molerat - still confusing to me what is the statemented balance & what is the full account balance but I will keep an eye on it.

It may be better for me to pay a bit extra into my account to stop it getting to high before Christmas. 

I am new to this so please accept my apologies for not replying to you all directly. 

Thanks for all you replies

Olinda99

the statement balance is the balance that is on your monthly statement that they send to you either by paper or online or whatever 

your account balance is the balance at any particular day which can vary obviously depending how you use the card

Neil49

Do you actually look at your monthly statements? It will show you the amount that is due for that particular month and the date the payment will be taken.

The balance of your credit card account on the day it is charged to your bank account will almost certainly differ unless you stop using the card. 

daveyjp

The online world has made it slightly more complicated.  In the past you spent on the card, you received a monthly statement and paid what was due.  If you wanted to know what you had spent since your last statment you needed to keep your own records.

With apps the system shows the rolling balance so you need to review the statement each month to know how much will be paid off.  Whatever isn't paid off will have been spent after the last statement was produced and will be due the following month.

la531983

Katie_Kat said:

Hi la531983 - I think they try and make it confusing so you may overspend - or am I being cynical? 

No, you just arent understanding how a credit card works.  A statement is produced with an amount on it. That amount is taken 2 or so weeks later.

Nothing more to it.

wiseonesomeofthetime

Katie_Kat said:

Hi la531983 - I think they try and make it confusing so you may overspend - or am I being cynical? 

Hi p00sticks - I use the card regularly, a few times a week. On checking it mentions the balance of nearly £800 will be taken next month. My monthly payment was taken on 16th of September even though the statement date is 23d September. However, I haven't spent nearly £800 since even the 16th September. However, after reading other posts it looks like you are almost a month behind by the time your statement comes out. It just doesn't look right no wonder people get confused thinking they are paying it all off monthly. 

Hi molerat - still confusing to me what is the statemented balance & what is the full account balance but I will keep an eye on it.

It may be better for me to pay a bit extra into my account to stop it getting to high before Christmas. 

I am new to this so please accept my apologies for not replying to you all directly. 

Thanks for all you replies

I have had at least two credit cards that do this.

The important thing is to read the statement in its entirety.

For example, my Tesco CC will show my statement balance and a minimum payment due date.

However, in smaller print beneath that, it states "We will take your direct debit for £xx.xx on or after" and then show a date earlier than the due date.

You need to read the statements closely to ensure that sufficient funds are in your account on the day the credit card provider requests them, else you run the risk of a failed DD penalty, despite being before the due date anyway!!

American Express are another that follow this practice.