How can I work out a future credit card min payment?

J35T3R

J35T3R

J35T3R

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12 Feb 2019
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221
Location
Sunny Ayrshire, Scotland.
Short story..... I need access to £5k quickly, rather than take a loan I have enough to stick this on to a credit card for 4/5 months tops. I'm currently remortgaging so I don't want to take a short-term loan so CC seems the best/quickest option.

I've got a promotion for a balance transfer still running which has about £2.2k and 21 months still on the promotion.

The APR is 24.9%, I need to add the £5k to that, what would be the minimum monthly payment? Would that just be on the £5k or would it be £5k with interest and £2k and a minimum cost?

Standard Balance (Purchases) rate is 1.876% per month - is that approx £93 a month plus more for the £2k interest free part?
 
VincentHanna said:
Pretty sure mortgages take in to account credit card debt when you apply.
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I already have money on the card, all I'm doing is adding to that but not taking out any fresh credit. Credit rating is pretty good and better/less outgoings and agreements when I last signed up 2 years ago. Just don't want a duff rate.
 
J35T3R said:
I already have money on the card, all I'm doing is adding to that but not taking out any fresh credit. Credit rating is pretty good and better/less outgoings and agreements when I last signed up 2 years ago. Just don't want a duff rate.
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I'm pretty sure they know how much credit you have.

Ie I have 30k credit, 0k used. And a 30k deposit.
That is exactly same as 30k credit with 30k used and 60k deposit.

That's the gist I'm getting from post. Use credit for deposit
 
J35T3R said:
I already have money on the card, all I'm doing is adding to that but not taking out any fresh credit.
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Mortgage companies don't take in to account your total credit limit on credit cards, they take in to account what you have borrowed against your credit limit.

Someone who borrows near the max is much riskier.

But with Credit Cards your payments go to pay off the oldest debt first, so the existing £2.2K (which is interest free)
 
VincentHanna said:
Mortgage companies don't take in to account your total credit limit on credit cards, they take in to account what you have borrowed against your credit limit.

Someone who borrows near the max is much riskier.

But with Credit Cards your payments go to pay off the oldest debt first, so the existing £2.2K (which is interest free)
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Not quite, the regulations changed quite a while ago and now all payments have to be applied to the most 'expensive' debt first, i.e. the one with the highest interest.
 
VincentHanna said:
Even worse then, as that means he won't actually be paying off his interest free debt within the 21 months he has left.
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It's not worse as it means the debt that's accruing interest is being paid off so less interest is accrued. Obviously in best interest to have all paid off as soon as possible though.
 
It's just until I get my deferred work bonus, then it's getting paid off.

Just wondering what the outgoing monthly payments will be till then?
 
All this talk of mortgages, all J35T3R wants is to understand the minimum payment.

SaintJimmy said:
Check the terms for your card, it will vary anything from 1-3% of your balance.
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This is the correct answer. Who is your card with?

I got a little lost on your post, you have a card with some interest free balance/money transfer offers and have the available credit? If so - great, go ahead and do that. The minimum payment will be against the total balance of the card, even if say 50% isn't earning interest and 50% is. You will already be paying a minimum payment, even against the interest free part.

*edit* Got the OP name wrong
 
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tlrBeta said:
All this talk of mortgages, all 200Sols wants is to understand the minimum payment.



This is the correct answer. Who is your card with?

I got a little lost on your post, you have a card with some interest free balance/money transfer offers and have the available credit? If so - great, go ahead and do that. The minimum payment will be against the total balance of the card, even if say 50% isn't earning interest and 50% is. You will already be paying a minimum payment, even against the interest free part.
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Hi, it's HSBC - they gave me a silly amount of credit that I thought I'd never use.

I do have about £40 from a shop that is showing 1.876% interest per month over the top of the interest free balance transfer, hence where I got the £5k purchase to £93 a month. Just wasn't sure if they would apply the interest to the total balance or just the purchase over the next few months.
 
Pretty sure the minimum payment percentage is usually shown on your statement or in the help section of your banks website.

The 1.876% is the interest charged on any non interest free portions of your purchase balance, not the figure used to calculate your minimum payment.
 
J35T3R said:
Hi, it's HSBC - they gave me a silly amount of credit that I thought I'd never use.

I do have about £40 from a shop that is showing 1.876% interest per month over the top of the interest free balance transfer, hence where I got the £5k purchase to £93 a month. Just wasn't sure if they would apply the interest to the total balance or just the purchase over the next few months.
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For Credit Card agreements made before 23 March 2011: £5 or 2.5% of the balance, whichever is higher, or if less than £5, your statement balance.

For Credit Card agreements made on or after 23 March 2011: interest, default charges and any payment protection insurance premium plus 1% of the principal, or 2.5% of the balance or £5 whichever is higher, or if less than £5, your statement balance.
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So the answer is 2.5% of the statement balance (this includes anything on/off interest free)
 
J35T3R said:
I'm going to miss out on a deal for a car that I just cannot pass up, if I crap out just now I'll just kick myself for 5 months.
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Not as much as you'll kick yourself for spiralling into bad debt, lol.

Probably doesn't answer the question but you can just set the card payments to pay the minimum every month no?
 
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