What happens if you only pay the minimum payment or pay more than that on credit card?

grumpy_codger

hobn_162 said:

Thanks for that information, so if I’m making a manual payment of more than the minimum (but not paying off full balance) it’s better to pay that manually as close to the statement date for less interest? Thanks! 

If you have a DD set up for a minimum payment and make an extra manual payment after the statement is produced and before the DD date, then, depending on the card provider, the manual payment can affect the amount taken by the DD, reducing it, possibly down to zero. Nothing bad, but less predictable in terms of the total amount you want to pay. So, the best time for an extra manual payment is soon after the DD, before the next statement is produced.

Nasqueron

grumpy_codger said:

hobn_162 said:

Thanks for that information, so if I’m making a manual payment of more than the minimum (but not paying off full balance) it’s better to pay that manually as close to the statement date for less interest? Thanks! 

If you have a DD set up for a minimum payment and make an extra manual payment after the statement is produced and before the DD date, then, depending on the card provider, the manual payment can affect the amount taken by the DD, reducing it, possibly down to zero. Nothing bad, but less predictable in terms of the total amount you want to pay. So, the best time for an extra manual payment is soon after the DD, before the next statement is produced.

Indeed, provided it's early enough. I had this just last month with a BT off a credit card (and cashback payment as it happened) and both caused the DD to be adjusted down. If you do it too close to the DD due date they can end up taking the statement value regardless.

surreysaver

hobn_162 said:

Thanks for that information, so if I’m making a manual payment of more than the minimum (but not paying off full balance) it’s better to pay that manually as close to the statement date for less interest? Thanks! 

If you make a manual payment close to the statement date, and you've not got a direct debit set up, and there's a hiccup, you've just blown your 0% deal.
Set up a direct debit to pay the minimum payment, and make additional manual ones.
Some card providers reduce the direct debit by the amount of manual payments anyway, as long as those payments are made in time before the direct debit process begins

eskbanker

surreysaver said:

hobn_162 said:

Thanks for that information, so if I’m making a manual payment of more than the minimum (but not paying off full balance) it’s better to pay that manually as close to the statement date for less interest? Thanks! 

If you make a manual payment close to the statement date, and you've not got a direct debit set up, and there's a hiccup, you've just blown your 0% deal.
Set up a direct debit to pay the minimum payment, and make additional manual ones.
Some card providers reduce the direct debit by the amount of manual payments anyway, as long as those payments are made in time before the direct debit process begins

What 0% deal?

hobn_162

Sorry yes, I’m not sure what’s meant by 0% deal there. 

I would just be making a manual payment that’s more than my minimum due as I can afford to pay more, just not to pay off the whole bill right now. But I know it always is right to pay more than the minimum when you can afford to do so. 

surreysaver

eskbanker said:

surreysaver said:

hobn_162 said:

Thanks for that information, so if I’m making a manual payment of more than the minimum (but not paying off full balance) it’s better to pay that manually as close to the statement date for less interest? Thanks! 

If you make a manual payment close to the statement date, and you've not got a direct debit set up, and there's a hiccup, you've just blown your 0% deal.
Set up a direct debit to pay the minimum payment, and make additional manual ones.
Some card providers reduce the direct debit by the amount of manual payments anyway, as long as those payments are made in time before the direct debit process begins

What 0% deal?

Sorry. Think I'm mixing it up with another thread I was reading. Regardless, always wise to set up a direct debit to avoid any costly mistakes 

surreysaver

hobn_162 said:

Sorry yes, I’m not sure what’s meant by 0% deal there. 

I would just be making a manual payment that’s more than my minimum due as I can afford to pay more, just not to pay off the whole bill right now. But I know it always is right to pay more than the minimum when you can afford to do so. 

I would still advise you to set up a direct debit to pay the minimum, in order to prevent any breaches of T&Cs, and any black marks on your credit file, should you mis-time the payment, or in case of any errors on the bank's side

enthusiasticsaver

If you have always paid the card off in full previously but are now unable to do so you may wish to consider balance transferring to a 0% deal so you will not have interest to pay. As long as you pay minimum or  higher you will be fine. 

hobn_162

Thanks for confirming paying the minimum due or higher before the due date means all with be fine