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Can I set up a direct debit to a credit card account? Watch

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    I'm thinking of getting a credit card because they're better protected, but I'm okay for money so this is the only reason I would use one. Can I set up a direct debit from my debit account, which automatically pays off everything I spend straight away?

    Also, are there any other bonuses with credit cards?
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    With a credit card, you are sent a statement once a month. This tells you the total balance that's on the card, and gives you about 3 weeks to pay that amount off. If you always pay the total balance off by the given date, then you'll never be charged any interest.

    When you set up the credit card, you have the option to set up a direct debit. Just make sure that it is set up correctly (i.e. to take the full amount rather than the minimum payment, or, say, 50% of the balance). You can check this on your first statement.

    As for rewards, there are quite a lot out there - see http://www.moneysavingexpert.com/car...k-credit-cards

    One of the best - if you are earning at least £1k per month - is to transfer your current account to Halifax. You then get £5 per month on the current account, and also £5 for every month in which you spend at least £300 on the credit card.

    Otherwise, if you are not earning, then you probably won't be able to get a decent reward card - just get any card from your existing bank.
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    Yes, you can set up direct debit payments to pay your credit card.
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    I'm not too sure if you can do it straight away (as the credit card company wouldn't be making any money then - through interest) it it usually a statement at the end of the month.
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    (Original post by themedicalgeek)
    I'm not too sure if you can do it straight away (as the credit card company wouldn't be making any money then - through interest) it it usually a statement at the end of the month.
    Yes you can.
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    (Original post by TravelGuru)
    Yes you can.
    so you mean the minute that someone pays using credit card it is automatically paid out by the bank as direct debit? seems very counter intuitive when you look at the definition of a credit card.
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    (Original post by themedicalgeek)
    so you mean the minute that someone pays using credit card it is automatically paid out by the bank as direct debit? seems very counter intuitive when you look at the definition of a credit card.
    I don't think the op meant AS SOON as she spent the money, otherwise whats the point of having a credit card? However you can set up direct debits to pay off your card.
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    What you can get is a direct debit to pay of it either in full, minimum or a fixed amount each month. You can start that from when you get the card. You have to have at it one month of the date the bank picks which is usually round about your statement date then you can change it.

    Take it from me lol.
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    (Original post by TravelGuru)
    I don't think the op meant AS SOON as she spent the money, otherwise whats the point of having a credit card? However you can set up direct debits to pay off your card.
    well in her question it says " automatically pays ... straight away" ...

    I do agree with you on the monthly direct debit scenario.
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    (Original post by themedicalgeek)
    well in her question it says " automatically pays ... straight away" ...

    I do agree with you on the monthly direct debit scenario.
    Oh maybe I mis-read then. Sorry about that.
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    (Original post by Pheylan)
    what's the average limit on an 18 year old's first credit card?
    My credit card (which I got at 20) has a limit of £400.
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    (Original post by themedicalgeek)
    I'm not too sure if you can do it straight away (as the credit card company wouldn't be making any money then - through interest) it it usually a statement at the end of the month.
    No, you can't set it up to go out straight away, it will go out about 3 weeks after you get your statement. But as long as you pay it off in full every month, there won't be any interest to pay, so this is not a problem.

    (Original post by Pheylan)
    apparently mine's going to be £1800, what's that about?
    It means that your bank likes you
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    RBS have given me so much credit it's ridiculous.

    At 19, I've got an overdraft of £1400, two credit cards at £500 and £1700 and a separate account with a £100 overdraft on it as well.

    And they wonder why there's a credit problem when people aren't sensible with it.
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    (Original post by Pheylan)
    apparently mine's going to be £1800, what's that about?
    Well I struggled getting any form of credit through no fault of my own so that might be why Barclaycard were "stingy" with me when it came to credit. My credit card is one of the ones suggested for people trying to build up a good credit rating.
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    (Original post by TravelGuru)
    I don't think the op meant AS SOON as she spent the money, otherwise whats the point of having a credit card? However you can set up direct debits to pay off your card.
    I meant as soon as possible really, I don't want to get charged interest basically but I want the benefits of extra protection and I would also like to build my credit rating up.
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    (Original post by misst911)
    I meant as soon as possible really, I don't want to get charged interest basically but I want the benefits of extra protection and I would also like to build my credit rating up.
    You won't get charged interest if you set up a monthly direct debit to pay all of the credit card off in full. You can't set up a direct debit to pay it off instantaneously. That will build your credit rating up nicely if you did the aforementioned.
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    (Original post by TravelGuru)
    You won't get charged interest if you set up a monthly direct debit to pay all of the credit card off in full. You can't set up a direct debit to pay it off instantaneously. That will build your credit rating up nicely if you did the aforementioned.
    Nice, thank you :-)
 
 
 
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