Credit Card Payments

[chrissa1]

I haven't had a credit card for years and years. I want to pay off the whole amount in full at the end of each month.
If I spend £30 on the 1st of September and then another £30 on the 29th September, do I need to pay off the whole £60 at the end of October, or do I just pay the first £30 on the 1st October and the other £30 at the end of October? Thanks.

[EcclesCake]

It will depend entirely on the cycle of your credit card some offer longer windows than others and the period isn't necessarily tied to the first of the month.

Have a Barclaycard and have elected to pay the balance in full by direct debit each month.

[gingejbee]

It depends when the bill is made up, and whether only one- or both- of the £30 appears on it.

[society]

If your billing date is the middle of the month, you'll be screwed.

[chrissa1]

It's a Vanquis card. Both payments appear on the September statement and it says I must pay £5 by 17th October. I realise that this is the minimum payment.

[society]

If you pay the minimum required payment, you'll be charge interest on the balance owed.

[gingejbee]

Well, if you want to pay off in full...it's whatever appears as"outstanding balance" that you'll have to pay.

[Mamyalynne]

When I had one and was being good (didn't last long) whatever the monthly balance was - I paid it off to guarantee no charges.

[EcclesCake]

If your two purchases fell within the billing cycle then that is your bill for that period.

[themas]

Chrissa

If you want to avoid a debt building up you must pay off each month the total outstanding balance on the statement. Far the best way is to do it by Direct Debit.

[chrissa1]

No. I wouldn't do that, society. It just seems to me that to make proper use of "credit", I'm not getting much credit or, "time to pay" if I have to clear the whole month's amount even if one transaction was made just a few days before it is deemed, payable.
I told you I wasn't used to these cards. Lol.

[Mamyalynne]

I understand your point, however it was your decision to spend a day or two before the bill was to be actioned - if you could have delayed that spend a few days it would have trailed onto next months bill.

[chrissa1]

That is very true, Mamya. I'll pay the whole September payment off, and time my purchases accordingly in future. Thanks all.

[craft1948]

Yes but if you bought something on the 1 September you aren't paying for it until the 17 October...........

[EcclesCake]

You are absolutely right Chrissa, if you make a purchase just before the cut off date you don't get a particularly long credit period. Unfortunately they work on fixed periods and not a rolling timeline.

[gingejbee]

The best you will get, in practical terms, is about 7 weeks free credit....and that will be on a purchase made at the very beginning of your payment cycle.

[factor-fiction]

>"I'm not getting much credit or, "time to pay" if I have to clear the whole month's amount even if one transaction was made just a few days before it is deemed, payable"

But if you don't have to pay until 17th October, chrissa, you will have benefitted from anywhere between 17 and 47 days' interest free credit.

Just a warning , if you don't pay in full the interest will be added, backdated to the date of purchase, not to the bill date, and I have a feeling Vanquis charge above average rates

[chrissa1]

Swings and roundabouts, craft. I understand now.

[VHG]

Don't think of it as credit, or you will start getting into debt.

Just think of it as one other way to buy something, and even if you bought something on your credit card just a few days before you got your statement then just pay it all off.

If you *DO* want to make the most of credit then do as follows.

I get my credit card bill on about the 9th of the month. I know if I buy something after about the 6th it WONT appear on the statement due on the 9th.

So by buying something on say the 6th October it wont appear on the October statement, but on the November statement.

As I don't need to pay off the November money till about the 25th of November I am getting credit from about the 6th of October till the 25th November.

So to maximize credit buy things JUST before your statement is due.

[society]

It's always wise to pay of the bill in its entirety when you receive it otherwise you'll be indebted to the credit cared company without end. Credit card companies try to get you one way or another, and if one is not careful and don't pay attention to their monthly statement, they'll be paying forever.

[porkchop]

As Gingejbee said you have to pay the OUTSTANDING amount shown on your monthly statement. If you only pay the minimum amount you will be saddled with interest will will mount up each month and the interest rate on these Credit Card accounts is huge.