Paying credit card bill

pushpop

Hi,

I recently signed up for an AIB student CC. My first bill is due on the sixth on Jan and im just wondering how the whole paying for it bit works, as stupid as that sounds. I have it set to 100% direct debit, and i got a statement off them 2 weeks ago for €186. however the balance now is €213, so im just wondering how they go about receiving payment. I have paid 80 off since recieving that statement, so will they take 106,186 or 213 is my question.

Thanks!

Explosive_Cornflake

186 is what you had to pay, and you've payed 80, so you have still to pay 106. Anything further you spent is next months problem

White Rabbit

If it's like my BOI cc then it's


Amount on last statement less payments received* before the direct debit.

so 106 euro

*this can be several days after lodgement

Paddy20

Paying off 100% every month by direct debit may be the most sensible method of payment, but you must have enough money in your account on the due date to pay the full outstanding amount on your credit card.

Personally, I have always paid the minimum payment by direct debit on the due date. As this allows some flexibility about how much you pay off your credit card outstanding balance each month, without having to pay the full amount. I usually pay the full amount when I can, and of course this costs me interest charges, but I do not mind that as my bank balance fluctuates up and down, and some months I would not have enough to pay all my credit card debt, so the minimum is automatically paid, thereby avoiding me getting a bad 'credit rating'.

This system works if you are sensible, do not abuse your credit card and pay the full balance off when you can afford too.

P.:cool:

pushpop

Right so. It's just my online banking webpage doesn't actually tell you how much you have paid off, or how much you owe towards the current statement less payments, so a newbie like me would get confused quite easily! If you're sure it's 106 then thats fine.

Creamy Goodness

just a warning...

take this case
if you have 200 euro to pay on your creditcard and you pay off 100 euros they won't charge you interest on the remaining 100 euros but on the orignal figure of 200 euros.

i only found this out today as someone got my a eddie hobbs :rolleyes: book.

on my AIB student credit card i have it set to take the minimum out of my account, but when the statement comes i go down to the bank and say "can you please pay this with the money in my account." "sure no problem" the whole episode takes less than 2 minutes at the desk (queuing time a lot longer )

pushpop

Right so. One final question:

Anything above the minimum amount that you want to pay has to be transferred manually from your current account into the CC account. is this correct?

blahblah06

oh cremo so i fu pay the bare minumum they still charge ya interest?

byte

As it's an AIB card, and assuming you have an AIB bank account, you can just use AIB's Online Banking to pay whatever amounts you want into your credit card.

Sarn

blahblah06 wrote:

oh cremo so i fu pay the bare minumum they still charge ya interest?

As Cremo said, unless you clear the full amount indicated on your statement by the due date you pay interest on the whole lot regardless of whether or not you paid off a fraction of it.

e.g. balance outstanding €1000. Automatic direct debit of 50% on due date. Only €500 outstanding, you pay interest on €1000.

This is how the credit card companies make all their money. OT, this is why it is recommended getting a short term loan to pay off any large long-term outstanding credit card debt as the interest paid on a short term loan is substantially lower than cc interest.

Morrigan

byte wrote:

As it's an AIB card, and assuming you have an AIB bank account, you can just use AIB's Online Banking to pay whatever amounts you want into your credit card.

Actually I'm trying to do that now, for the first time, and I can't seem to figure it out...

CCOVICH

Morrigan wrote:

Actually I'm trying to do that now, for the first time, and I can't seem to figure it out...

You need to set it up as a bill and use the bill payment option.

boo4842

Sarn wrote:

As Cremo said, unless you clear the full amount indicated on your statement by the due date you pay interest on the whole lot regardless of whether or not you paid off a fraction of it.

e.g. balance outstanding €1000. Automatic direct debit of 50% on due date. Only €500 outstanding, you pay interest on €1000.

This is how the credit card companies make all their money. OT, this is why it is recommended getting a short term loan to pay off any large long-term outstanding credit card debt as the interest paid on a short term loan is substantially lower than cc interest.

Good gravy, where are you people getting this. This is very misleading the way you are explaining it. If you borrow 1000 they start charging you interest (assuming you have a balance) the day you borrow it. So if you pay 900 at the end of the month, it doesn't change the fact that you borrowed 1000 all month and should pay interest on it. The next month of course you only had a balance of 100 for 30 days and would only be charged on that.

Its like borrowing a car loan for 5000 and paying 500 a year in interest. If you pay the full 5000 2 days before the year ends, it doesn't change the fact that you still had 5000 for 363 days and would have to pay interst of about 498 for that year.