Credit Card Minimum Payment . . Beware . .

Drumpot

Just got done there by an oversight on my part, but another cheeky sly charge by the bank so just wanted to warn anybody who is not aware of it.

Basically, every month I use online banking to pay most of my bills, including credit card. At the very least I pay minimum amount.

I assumed that a month is from 1st to last day of each month and that the minimum payment should be paid within that timescale . . Not so it seems . .

Apparantly between the 1st of the month and when your statement is issued, any moneys paid into your credit card does not count for that months "minimum payment".

So in my case, I paid my minimum payment on 1st July (just so I wouldnt forget) and got a €7 non minimum payment fee because they said my statement wasnt issued until the 5th of July and only then did my min payment apply. .

Buyer beware and all that . . Just dont get stung like me . .

GerardKeating

Drumpot wrote: »

Apparantly between the 1st of the month and when your statement is issued, any moneys paid into your credit card does not count for that months "minimum payment".

It not that it does not count, but that it counted to the previous month, another way of looking at it is that you had a few extra days to pay last month.

Drumpot wrote: »

So in my case, I paid my minimum payment on 1st July (just so I wouldnt forget) and got a €7 non minimum payment fee because they said my statement wasnt issued until the 5th of July and only then did my min payment apply. .

Buyer beware and all that . . Just dont get stung like me . .

Credit card statements do not always issues on the 1st of the month, some banks spread them over the month, mine is about the 11th of the month.

coffee_cake

You really shouldn't be making the minimum payment anyway!!

MagicMarker

Credit cards are the work of the devil. Get rid of it, if you can't afford it then don't buy it.

Drumpot

bluewolf wrote: »

You really shouldn't be making the minimum payment anyway!!

Its funny that I wrote this post as a warning for others (not for people to judge me on why I have a credit card or what I should do with it), but lets roll with it . .

Perhaps you can advise me how to pay off the credit card cause I am stumped . . Since you know so much of my circumstances I am sure you can advise on how best to rid myself of this evil curse . .

I never understand why people come on here and judge others as if they are perfect, particularly when the point they make is completely irrelevant and not helpful in anyway .. This is why I love and hate boards.ie in equal measure, there are so many role models of society ready to look down at you, just makes me want to be a better person . . . .

the_syco

Drumpot wrote: »

Basically, every month I use online banking to pay most of my bills, including credit card. At the very least I pay minimum amount.

Well, fair play for paying it off, but I hope you've cut up the credit-card. I won't get one, as I know I'll have no money left very quickly, but I know a few who are in serious debt, and only working out of it, since they cut up their credit card.

coffee_cake

Drumpot wrote: »

Its funny that I wrote this post as a warning for others (not for people to judge me on why I have a credit card or what I should do with it), but lets roll with it . .

Perhaps you can advise me how to pay off the credit card cause I am stumped . . Since you know so much of my circumstances I am sure you can advise on how best to rid myself of this evil curse . .

I never understand why people come on here and judge others as if they are perfect, particularly when the point they make is completely irrelevant and not helpful in anyway .. This is why I love and hate boards.ie in equal measure, there are so many role models of society ready to look down at you, just makes me want to be a better person . . . .

Where was I judging anyone? don't be so sensitive - it's standard advice. If you pay minimum amounts you'll cripple yourself in the interest and end up paying far more over far longer.

Personally I'd say try getting a loan to cover it and pay off the loan instead, but maybe you can't.

chris85

credit cards are brilliant if used effectively. they provide peace of mind if goods are not recieved as can do a chargeback as i had to do recently and they are also fantastic for an emergency as well in case anything happens.

I have my credit card 2 years now and clear balance in full each month as i generally just buy a few things online but never anything massive anyways. I will always have my CC for emergencies and use it for online purchases for the safety aspect of it.

People say credit cards are bad but its not the cards fault people rack up bills on them. They know what they are doing so its their fault at the end of the day.

rainbowtrout

Drumpot wrote: »

Just got done there by an oversight on my part, but another cheeky sly charge by the bank so just wanted to warn anybody who is not aware of it.

Basically, every month I use online banking to pay most of my bills, including credit card. At the very least I pay minimum amount.

I assumed that a month is from 1st to last day of each month and that the minimum payment should be paid within that timescale . . Not so it seems . .

Apparantly between the 1st of the month and when your statement is issued, any moneys paid into your credit card does not count for that months "minimum payment".

So in my case, I paid my minimum payment on 1st July (just so I wouldnt forget) and got a €7 non minimum payment fee because they said my statement wasnt issued until the 5th of July and only then did my min payment apply. .

Buyer beware and all that . . Just dont get stung like me . .

It's not a cheeky, sly charge. You just didn't take any notice of when your bills were issued and when they needed to be paid. Credit cards don't go by calendar month, much the same way as ESB, mobile phones, insurance or anything else you can be charged for on a monthly basis don't go by calendar month.

If your statement is issued on August 5th, every payment you make between August 5th and Sept 4th goes towards payments for that month. It's not rocket science.

On your online banking, go back through your previous statements to see what date they are issued so you know for the future what timeframe you are working on for your credit card bill.

Sikie

Credit card offer alot of flexibility and peace of mind if travelling but I pay mine of each month no exceptions. Currently there is a 0.5% Credit applied each month to the total purchases so I channel alot of routine stuff through the card to get some extra discount.

Drumpot

rainbowtrout wrote: »

It's not a cheeky, sly charge. You just didn't take any notice of when your bills were issued and when they needed to be paid. Credit cards don't go by calendar month, much the same way as ESB, mobile phones, insurance or anything else you can be charged for on a monthly basis don't go by calendar month.

If your statement is issued on August 5th, every payment you make between August 5th and Sept 4th goes towards payments for that month. It's not rocket science.

On your online banking, go back through your previous statements to see what date they are issued so you know for the future what timeframe you are working on for your credit card bill.

Actually you are wrong . . Payments only matter between August 5th and 31st August . . Might not be rocket science but its something that seemed to elude you my good friend . .

Ive never had this problem before as its only recently that I wasnt able to pay my bills off completely each month . . Like everything, its a charge that we should all be aware of , but its easy to miss these things . . If this thread helps one person, it will be worth it . .

Drumpot

bluewolf wrote: »

Where was I judging anyone? don't be so sensitive - it's standard advice. If you pay minimum amounts you'll cripple yourself in the interest and end up paying far more over far longer.

Personally I'd say try getting a loan to cover it and pay off the loan instead, but maybe you can't.

By saying "you really shouldnt be making minimum payments". . You assumed that I could afford to pay more . . That in any language is judging a persons motivations for not paying off their CC . . . Perhaps you thought you were being helpful with that statement, I dont see how you could think anybody could take that other then a sarcastic insult to their intelligence, particularly when they didnt actually ask how they could reduce their credit card bill. .

I need to have some sort of credit facility . . While its easy for some people to come on here and say "you shouldnt have one" , some of us have to live in the real world where this kind of credit can get us through tough times, like say when your partner lost their job or when unforeseen bills pop up like a sick pet or child . .

Again though, I only posted here to warn people of this cheeky charge that is easy to miss . .

rainbowtrout

Drumpot wrote: »

Actually you are wrong . . Payments only matter between August 5th and 31st August . . Might not be rocket science but its something that seemed to elude you my good friend . .

Ive never had this problem before as its only recently that I wasnt able to pay my bills off completely each month . . Like everything, its a charge that we should all be aware of , but its easy to miss these things . . If this thread helps one person, it will be worth it . .

No payments matter before the due date on your credit card bill, but if you pay any extra payments after this date and before the date of your next statement they will come off the balance for that month. They don't count for the next statement. Nothing has eluded me. And you're not my friend.

John Mason

your statement clearly shows the date the payment needs to be received by

i am really struggling to see what the issue is

chris85

irishbird wrote: »

your statement clearly shows the date the payment needs to be received by

i am really struggling to see what the issue is

+1

Both online and paper bills will clearly advise when payment due.

Drumpot

rainbowtrout wrote: »

No payments matter before the due date on your credit card bill, but if you pay any extra payments after this date and before the date of your next statement they will come off the balance for that month. They don't count for the next statement. Nothing has eluded me. And you're not my friend.

Obviously Sarcasm edudes you aswell ! ! And the feeling is mutual, none of my friends have a go at me if I try to give them a heads up on something they mightnt know . .

You said in your previous post - If your statement is issued on August 5th, every payment you make between August 5th and Sept 4th goes towards payments for that month.

THis is just wrong because we were talking about minimum payment period and the time between Sep 1st and 4th do not count . Just stop trying to be a smart arse, you'va already fallen over yourself and then highlighted it a second time . . :rolleyes:

Drumpot

irishbird wrote: »

your statement clearly shows the date the payment needs to be received by

i am really struggling to see what the issue is

Yes, you obviously are struggling badly . . I started a post to warn people (many of whom I have talked to and mentioned who have no clue about this way of charging) that there is actually a timeframe in the month that doesnt actualy count towards min payment. .

It seems all the smart asses who know about this charge (some who actually dont even understand it but yet still mock the thread) feel insulted that I would be so bold as to put a warning thread up for people who arent as all knowing as the PC Warriors on Boards.ie .

Actual intention of contributing something remotely constructive - 0 . . . Seriously, its so sad its hilarious . .

Orim

Drumpot wrote: »

Obviously Sarcasm edudes you aswell ! !

You said in your previous post - If your statement is issued on August 5th, every payment you make between August 5th and Sept 4th goes towards payments for that month.

THis is just wrong because we were talking about minimum payment period and the time between Sep 1st and 4th do not count . Just stop trying to be a smart arse, you'va already fallen over yourself and then highlighted it a second time . . :rolleyes:

So you mean the bank is stealing any money that you pay in between the 1st and the 4th of the month? No it goes as the payment for that month.

Another example my due date for my credit card is the 19th. I can make a payment on my card on any day from the 19th to the 18th of the next month. Any payment made in those ~30 days will count towards my minimum payment.

Drumpot

Orim wrote: »

So you mean the bank is stealing any money that you pay in between the 1st and the 4th of the month? No it goes as the payment for that month.

Another example my due date for my credit card is the 19th. I can make a payment on my card on any day from the 19th to the 18th of the next month. Any payment made in those ~30 days will count towards my minimum payment.

That was said in the context of minimum payment . . Unless of course that poster was answering and discussing something that is completely irrelevant in the context of the post . .:eek:

What are you talking about stealing ?! . . Are people here completely incapable of understanding the point made in this thread or are they simply Trolling (there I said it!) or perhaps they are trying to defend the banks (didnt see that coming!). .

Seriously . . I knew there were people on boards.ie who loved to just sabotage posts with unhelpful waffle, but this is ridiculous .

Your example obviously shows that differant credit card companies have differant rules . . You dont get 30 days with my company obviously as when I phoned they up they said the only time a payment is valid for minimum payment rule is from date that bill is issued and end of the month. . Bills are usually issued a couple of days after the 1st day of the month . .

music.babe75

My CC statement is issued on the 9th of the month (say 9th August)and I have I think until around 28th of that month to make the minimum payment.

If I don't make the payment until the 1st of Sept, even if its more than the minimum, I will be hit with a late payment charge which is what the OP was probably charged.

I can still make payments between 28th and the 9th and it will reduce my balance due but I still need to make the minimum payment by the 28th of the month......

Drumpot

music.babe75 wrote: »

My CC statement is issued on the 9th of the month (say 9th August)and I have I think until around 28th of that month to make the minimum payment.

If I don't make the payment until the 1st of Sept, even if its more than the minimum, I will be hit with a late payment charge which is what the OP was probably charged.

I can still make payments between 28th and the 9th and it will reduce my balance due but I still need to make the minimum payment by the 28th of the month......

That's all I was saying . . I was just warning people that dont know of this charge or timescale for minimum payment . .

NuMarvel

Drumpot wrote: »

That's all I was saying . . I was just warning people that dont know of this charge or timescale for minimum payment . .

When you get your statement, when does it say that payment needs to be made by?

Drumpot

NuMarvel wrote: »

When you get your statement, when does it say that payment needs to be made by?

It didnt say that any monies paid between the last cut off point and the new statement would not be taken as minimum payment for that month . .

Every statement says min payment has to be made by end of each month (nothing about the days before the statement issue would not count towards it!) . . Why the statements arent issued at the 1st day of each month and that a person has each month to pay is beyond me . . Makes complete sense, but who am I to question the motives of banks making charges a little bit more complicated then they need to be . .

28064212

Drumpot wrote: »

It didnt say that any monies paid between the last cut off point and the new statement would not be taken as minimum payment for that month . . .

It also didn't say that any monies paid between the last cut off point and the new statement would be taken as minimum payment for that month. Obviously any payment made is only included if it's paid by the "payment due by" date. The "Statement issued" date is just that: the date that the statement is issued. It has nothing to do with the monthly "cycle" of your credit card.

Drumpot

28064212 wrote: »

It also didn't say that any monies paid between the last cut off point and the new statement would be taken as minimum payment for that month. Obviously any payment made is only included if it's paid by the "payment due by" date. The "Statement issued" date is just that: the date that the statement is issued. It has nothing to do with the monthly "cycle" of your credit card.

Baring in mind I only posted this thread as a warning to others . . Your point is what ?

Or are you just fkn around like the other idiots and making pointless posts that do nothing but waste peoples time ?

28064212

Drumpot wrote: »

...pointless posts that do nothing but waste peoples time?

Most people would be of the opinion that your OP falls into that category. You accused the banks of a "cheeky sly charge", when in fact it was a fairly fundamental mistake on your part. You seem to have some kind of misapprehension that the bank are trying to deliberately confuse you.

NuMarvel

Drumpot wrote: »

It didnt say that any monies paid between the last cut off point and the new statement would not be taken as minimum payment for that month . .

Every statement says min payment has to be made by end of each month (nothing about the days before the statement issue would not count towards it!) . . Why the statements arent issued at the 1st day of each month and that a person has each month to pay is beyond me . . Makes complete sense, but who am I to question the motives of banks making charges a little bit more complicated then they need to be . .

Please correct me if I'm wrong on any of these points:

a) The statement tells you that payment is due by the end of the month. I don't know who your particular provider is, but most credit card providers I've been with also have a notice about allowing a few days for payment to reach your account (i.e. you should make payment a few days before the final due date).

b) Based on your original post, you make payment on or just after the first of every month.

c) The bank issues a new statement on or about the 5th of every month.

If that's correct, then what seems to be happening is that you're being charged a late fee for missing the due date (though I'm not too sure why they're calling it a non-minimum payment fee). The money you pay goes towards reducing your balance, but doesn't get included towards the next month's minimum payment as it's paid before the bank recalculates what you owe them, the interest and what the minimum payment should be.

Simple solution is to make your payment prior to the end of the month. This may require a little bit of hardship for one month, (as you'll be paying the bank twice for one month), but once it's done, it's back to normal, and it should mean no more fees from the bank.

As for why the bank don't do it on a calendar month basis, I don't have a clue, but the only ones that can tell you that is the bank, so in fairness, you should direct your query to them.

If this reply isn't to your satisafaction, then please feel free to ignore it, but I think you'll agree from looking through my posting history that I for one do not have a habit of "pointless, unproductive posts" in this forum.

Drumpot

28064212 wrote: »

Most people would be of the opinion that your OP falls into that category. You accused the banks of a "cheeky sly charge", when in fact it was a fairly fundamental mistake on your part. You seem to have some kind of misapprehension that the bank are trying to deliberately confuse you.

My purpose is to help people who might not be aware of the charge, what is yours ?


Your presumption that its not a banks thing to try to confuse clients is naieve at best considering what has happened over the last 10 years . .

Anyways, that is secondary to my OP point . . Wouldnt expect anybody who might of actually benefited from my OP to reply here (considering the ridiculous contempt people are showing for me just trying to warn people).

professore

It seems that now there is the "never use credit" brigade are just as sanctimonious as the "rent is dead money" and "spend like it's going out of fashion" brigade were a few short years ago. Live in the real world people ! To the OP, well done for trying to help out others.

Drumpot

NuMarvel wrote: »

Please correct me if I'm wrong on any of these points:

a) The statement tells you that payment is due by the end of the month. I don't know who your particular provider is, but most credit card providers I've been with also have a notice about allowing a few days for payment to reach your account (i.e. you should make payment a few days before the final due date).

b) Based on your original post, you make payment on or just after the first of every month.

c) The bank issues a new statement on or about the 5th of every month.

If that's correct, then what seems to be happening is that you're being charged a late fee for missing the due date (though I'm not too sure why they're calling it a non-minimum payment fee). The money you pay goes towards reducing your balance, but doesn't get included towards the next month's minimum payment as it's paid before the bank recalculates what you owe them, the interest and what the minimum payment should be.

Simple solution is to make your payment prior to the end of the month. This may require a little bit of hardship for one month, (as you'll be paying the bank twice for one month), but once it's done, it's back to normal, and it should mean no more fees from the bank.

As for why the bank don't do it on a calendar month basis, I don't have a clue, but the only ones that can tell you that is the bank, so in fairness, you should direct your query to them.

If this reply isn't to your satisafaction, then please feel free to ignore it, but I think you'll agree from looking through my posting history that I for one do not have a habit of "pointless, unproductive posts" in this forum.

You see, the ONLY reason I posted this was to warn others . . I never asked for advice, didnt ask for an explanation of why the banks do it or how they decided they would do it and if your post was genuine then I do apologise. .

Some of the posters that have come here are just fkn around making pointless posts on something completely irrelevant . .

I have talked to several people at this stage (friends and family) and none of them thought about the way CC's are billed and none of them are aware of it . . I wish I didnt bother trying to warn others here cause you always get stuck explaing yourself to people in Ivory towers, hiding behind the PC with their mightier then thou attitude . .

jor el

Drumpot wrote: »

You see, the ONLY reason I posted this was to warn others . .

And what reason have you for throwing abuse at everyone who disagrees with you? I'm locking this thread until the forum mod can take a look at this. Your abusive posts deserve a infraction at the very minimum. People are free to comment on your post whether you asked or not. If you don't like that, get a Blog, and stay off DISCUSSION forums.