Credit Card First Payment

[chrissa1]

My first payment on my new 0% credit card is due on the 19th. I have a dd set up to pay the minimum each month but obviously will pay more when I can.

My question: I bought a Humax Freeview Recorder which I then returned and got a refund. The purchase appeared on my statement and now the refund has appeared on my statement. Will my dd still work and take the £7.95 out of my account?

Thanks.

[youngmafbog]

It will most probably depend on the timing. If you make a payment and then a refund is received in the payment month then nothing will be due. If they straddle a payment cycle then the payment may be due.

Best thing to do is ask the CC company for their policy.

[Buenchico]

If, at the time your payment becomes due, the balance on your account is zero, no money should be taken via direct debit. (It's never happened to me, anyway!)

[Hopkirk]

In my experience refunds are not treated as payments to your account, so the minimum payment will be unaffected. (If that's what you were asking)

[Jackdaw33]

Verbum sapientibus. Never set up a DD for the minimum payment. That's how these people make their money and leave you further in debt. Think what you can reasonably afford each month and arrange your DD accordingly.

[youngmafbog]

Personally I would never set up a DD.

Not at al due to the fact I worked in IT at a credit card company!!

[Hopkirk]

Jackdaw, it's zero percent. As long as the full amount is paid off before the offer period ends, minimum payment makes sense.

[Jackdaw33]

My post was directed to those who tend to 'max' their credit cards.

[Hopkirk]

Actually, re-reading the original question, you are right in your caution.

[chrissa1]

Thanks for all your answers.

You’re right Hopkirk it’s 0% and it was also a balance transfer card and my transfer amount was £500 @ 39%. I intend to get this amount to zero before the time limit expires, which is 32 months.

So I’ll just let the minimum amount dd go through, this month? Yes?

[Jackdaw33]

Fine, Chrissa, if you can do it, but 39% is a helluva a lot of interest.

[Hopkirk]

Yes, you should be safe. The conditions attached to your balance transfer will be that you make the minimum payment, so as long as you let them take that amount it should keep them happy. I don't believe though that they will consider the refund as part of that payment.

[youngmafbog]

Ah, I see what you re saying now.

No, the refund will not count as repayment.

[chrissa1]

Thanks everyone. My question has been answered.