Credit cards

Whatever are in the terms and conditions of the lender.

If you've gone over your limit it's because the minimum payment was less than the previous balance plus the interest accrued in the month.

With a 31 day month and interest accruing on/around weekends, it's certainly possible for the interest on a balance to vary quite a bit from month to month.

So, yes it's possible and this is probably what happened, and if it's within their T&Cs it's perfectly legal for them to do this.

Yet another example of why they say you should be careful making minimum payments, as the payment is based on the balance+interest of the previous month, not the currently accruing month.
 
Based on his APR it'd need a minimum payment of 1.67% or less. I can't be 100% sure, but I don't think 1.67% minimum payment cards exist.

Even if it was 1.5% it'd take a fairly long time for it to creep up over the limit. Each month the balance would only increase by less than 0.2%, so at 1900 with a limit of 2000 it'd be years before it went over.
 
Mint's minimum payment is 2.25%. I'm assuming you don't have a bill in front of you... but you can easily work out what the min payment is.

Take the payment you made last and divide by the balance.

So if you made a payment of 80 against a balance of 3200 the minimum payment is 0.025, which would be 2.5%.
 
The Halk said:
Based on his APR it'd need a minimum payment of 1.67% or less. I can't be 100% sure, but I don't think 1.67% minimum payment cards exist.

Even if it was 1.5% it'd take a fairly long time for it to creep up over the limit. Each month the balance would only increase by less than 0.2%, so at 1900 with a limit of 2000 it'd be years before it went over.
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I don't understand it either to be honest, especially since last month I paid £800 to bring it well below.
 
mejinks said:
I don't understand it either to be honest, especially since last month I paid £800 to bring it well below.
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Well, all I can think of is that either they've reduced your limit (they can do that) or it's not an over limit charge, it's a late payment charge....

Looks like you'll need to phone RBS and find out.
 
One of my cards has a minimum payment of £25 OR 1%, whichever is larger.

Perhaps if (for example, using my figures) your DD was for £25 but your debt was >£2500, you may be charged?
 
Nitefly said:
One of my cards has a minimum payment of £25 OR 1%, whichever is larger.
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I very much suspect you're only almost correct there. It's almost certainly 1% of the balance plus interest or £25, whichever is higher. That was the new regulatory requirement that was put on the industry in the past couple of years. Prior to that it was 3% for most cards, and then some went to 2.5% and then some went to 2.25%. I'm near certain no card has 1% regardless of interest.

I currently pay 1% on my Tesco because it's interest free.
 
The Halk said:
I very much suspect you're only almost correct there. It's almost certainly 1% of the balance plus interest or £25, whichever is higher. That was the new regulatory requirement that was put on the industry in the past couple of years. Prior to that it was 3% for most cards, and then some went to 2.5% and then some went to 2.25%. I'm near certain no card has 1% regardless of interest.

I currently pay 1% on my Tesco because it's interest free.
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That sounds about right. My card is interest free too.

Suckers :p
 
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