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Credit card question

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  • 12-09-2013 5:22pm
    #1
    dobsdave
    Closed Accounts Posts: 1,814 ✭✭✭


    Ok, so I cleared my credit card balance bar 45 pounds (its a uk credit card).
    The interest came to about 58.
    So a new balance of approx 103 pounds.
    I am being asked for 59 as a minimum payment.

    The BOI online service desk gave me this explanation:

    Any monthly minimum payment will be rounded up to the nearest pound (£)

    and will be the greatest of:

    - 2.5% of the outstanding balance on your statement (minimum £5)

    OR

    - The full balance (if less than £5) OR

    - 1% of the outstanding balance plus interest, plus fees, plus any insurance

    premium.

    So who makes the choice? If I am ever in the same situation, how would I plan with 3 possible payment amounts?


Comments

  • Options
    #2
    Bank of Ireland: Linda
    Closed Accounts Posts: 719 ✭✭✭Bank of Ireland: Linda


    Hi dobsdave,

    The minimum payment is decided by the greater or highest of the three options. Minimum payment will always cover interest, fees and charges, plus 1% of the principle debt. In the long run, this means that you will clear your balance quicker to avoid an over excessive build up of interest on your credit card account.

    I hope this explains it and if you have any questions particular to your account, a representative in Credit Card Services should be able to assist.

    Thanks
    Linda


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