Credit Card

[jennyjoan]

My last payment of £52 will be paid on some date this month but I often wonder how it works - that the bank know it is my last payment.

[gingejbee]

I suspect the bank may be keeping a record of what you've owed and what you've paid in...all in their computer records .

[jennyjoan]

HOPE SO LOL - I'll not be long ransacking the place. LOL

[barry1010]

You can cancel your direct debit if you are certain that you will not use the credit card again

[jennyjoan]

what Barry? don't understand. This is my first Credit Card and I will never be using it again. So do I have notify the bank to stop my direct debit as it were. If so didn't know that. I just thought they would take my last payment of £52 and that would be it. If it is what you say I will have to contact them.

[barry1010]

You don't have to cancel the direct debit but I always cancel direct debits when the service has ended. It is easy to do online if that is the way you bank.
If you do decide to cancel the direct debit make sure the last payment has gone out first.
You shouldn't have any problems if you decide not to cancel the DD

[JimF]

"that the bank know it is my last payment"

If you want a trite answer, jj, they know by maths and computer logic.

if (outstandingBalance > 0)
{
continueDirectDebit();
}
else
{
stopDirectDebit();
}

[Hopkirk]

Don't cancel the direct debit until the card company confirm that there is nothing else to pay. There could be some interest next month.

[jennyjoan]

ok - thanks all - glad I asked the question

[Hopkirk]

The bank won't know it is your last payment, or how much you owe in the card.

The direct debit isn't an instruction to pay, it is permission for the bank to pay when the credit card company request payment.

Once the credit card company stop requesting payment, nothing should be going from your bank to them.

[jennyjoan]

well my last payment on the credit card has been paid like last week - do I have wait on any further instruction or just wait and see

[bednobs]

what further instruction will you require JJ?
They will send you your statement as you usually do and presumably it will show a 0 balance.

[ubasses]

You don't have to do anything, the credit card company will not collect any more payments as long as the account balance is £0. You can keep the card, should you have need to spread the payments on any future purchase, they will then start taking repayments again under the terms agreed. It will save you having to apply again if you needed one.

[jennyjoan]

bednobs I don't get paper statements anymore but will look out for any debit next month. I'm so glad to see the end of credit cards - first time ever and I hope forever.

[ubasses]

Don't dismiss keeping your credit card Jenny, they are a good financial tool, especially for anything over £100 as you have the benefit of the Consumer Credit section 75 law. This is like an extra guarantee where you can get your money back if there is a problem with goods, or Companies go out of Business.

[Jackdaw33]

A credit card, wisely used, can be of great benefit. Unfortunately many people do not use it wisely, treating it as a magic money tree, which it is not. Hence they end up in a vicious spiral of debt.

[barry1010]

I have had credit cards for over 40 years and have never experienced an unauthorised direct debit or overpayment from any of them.
I love my credit card - doesn't cost me a penny, peace of mind and I've got over £20 worth of vouchers to spend in Tesco - just by using the card for purchases I have to buy.

[AuntPollyGrey]

Jenny , if your credit card balance is showing a zero (because you have paid it off) its impossible for the bank to take a direct debit. Recently I forgot I'd paid off my CC balance early and went to clear it and got a message 'you cannot pay off more than you owe' -I realised then I'd paid it off the week previously so I wouldn't forget....ha ha

[jennyjoan]

Err - just a wee follow up - haven't received any paperwork re the ending of my debt being fully paid, however on looking at the credit card statement online I sorta notice they are still charging me like £3 a month, looked at it tonight and it is up to £6. Is that interest they are still charging for me for a credit card that is completely cleared?

[Mamyalynne]

Some cards charge a monthly fee JJ, you need to check if yours is one of them and sort it out.

[jennyjoan]

Mamy - are you saying they keep charging a monthly charge even though the full amount has been paid off