- Credit Card
- Real Estate
I’m new to credit cards and wish to understand how the following scenario will play out.
Initial balance £0
September 6th to October 5th I run up £1000 on the card. Statement arrives for £1000 to be debited as per my direct debit on the 3rd of November.
Between October 5th to 15th I run up £500 and on the 16th of October I manually make an early payment of £300. The direct debit amount remains as the statemented £1000 and my card balance reads 1200.
Is the £300 I have paid early contributed towards the £1000 statement payment? In other words, if I adjust my direct debit to £700 to go out on the 3rd of November, will I have fully paid off the card for 6th September to 5th Oct? Or will I have only paid 700 of the statemented £1000 and the early payment of £300 has contributed towards the reduction of the future statement? Will I pay interest in this scenario?
I’m in the UK and my bank is Barclays for reference.