Will I carry a balance if I make an early payment?
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.
Yes, the 300 is applied to the 1000 due.
You have to pay 700 more for the month.