Clarity - DD and manual payments
bd10
Posts: 347 Forumite
in Credit cards
Hi all,
Quick question on the interplay between a DD for full balance and manual payments.
When I applied for the Clarity CC I selected to pay the balance in full by direct debit each month. I read the T&C and they say that the actual DD amount would take manual payments done prior to 2 days of the payment date into account.
Suppose last month's statement amount was £400 which would be collected by DD this July-end. Meanwhile, I made further transactions after the statement date of say £300 but also payments to the card of say £300. The balance as of today stands unchanged at £400.
Am I correct to assume to the DD amount of £400 will now be reduced by £300, ie. only £100 will be collected by DD?
Now suppose I made manual payment since the statement date of £400 or - more interestingly more than £400? My current balance would still be positive, so I would not bring the card into credit. Would the DD be zero? And if so, would it still remain in place for subsequent months?
Just trying to figure out how to best manage my cash flows (showing regular transaction flows on the card but keeping the utilisation low enough).
Thanks
bd
Quick question on the interplay between a DD for full balance and manual payments.
When I applied for the Clarity CC I selected to pay the balance in full by direct debit each month. I read the T&C and they say that the actual DD amount would take manual payments done prior to 2 days of the payment date into account.
Suppose last month's statement amount was £400 which would be collected by DD this July-end. Meanwhile, I made further transactions after the statement date of say £300 but also payments to the card of say £300. The balance as of today stands unchanged at £400.
Am I correct to assume to the DD amount of £400 will now be reduced by £300, ie. only £100 will be collected by DD?
Now suppose I made manual payment since the statement date of £400 or - more interestingly more than £400? My current balance would still be positive, so I would not bring the card into credit. Would the DD be zero? And if so, would it still remain in place for subsequent months?
Just trying to figure out how to best manage my cash flows (showing regular transaction flows on the card but keeping the utilisation low enough).
Thanks
bd
0
Comments
-
The transactions done after the statement is issued would have no bearing on the payments (they don't cancel each other out if that's what you mean).
The DD would indeed reduce to £100 if £300 payment is made off a £400 statement prior to the 2 day rule.
If you paid more and the DD was zero this month, that wouldn't continue next month as your new statement will be produced owing £x amount and so the cycle begins again - if you pay before the due date, it will reduce the amount collected by DD.
Putting your card into credit on purpose on a regular basis could cause you to have your account closed. Also DDs not taken for 13 months will need to be set back up so if you did the above scenario long term, be aware when you go to use the DD it may be dormant.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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