Credit card statements and how to pay your credit card

  1. What do I need to know about credit card statements?

    You should receive your statement each month after you begin using the card. If, for some reason you do not receive your statement, your credit card provider will still expect a payment.

    The statement will show:

    • how much you owe (outstanding balance),
    • your transactions made that month, e.g. purchases you’ve made in shops,
    • payments you’ve made to your credit card,
    • the minimum payment you’re required to pay,
    • the date by which the payment needs to be made.

    A statement may also include:

    • changes to your terms and conditions,
    • other useful information contained in the summary box such as forthcoming changes to interest rates, charging methods and payment timescales,
    • if there are any amounts outstanding from a previous statement.

    If you have not made a payment (or less than your minimum payment) then you will receive a formal request for payment, normally through the post.

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  2. What should I look out for in my statement?

    Check your statement against your receipts for items you didn't purchase, have no knowledge of or which have been debited incorrectly.

    You may not immediately recognise all the transactions on your statement because some places where you’ve used your card may appear under a different name.This can be the case with some shops which form part of a wider group of retailers, or simply the location of a head office. If you don’t recognise a name, try doing an internet search to see if it is related to any places you’ve used your card in recently.

    If you still don’t recognise the transaction call your credit card issuer as soon as possible and they will try to help.

    It’s really important to make at least your minimum monthly payments on time – if you don’t, you’re likely to be charged a late payment fee and your ability to get credit in the future may be affected.

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  3. How much do I need to pay each month?

    You need to make at least the minimum payment each month. This varies by credit card issuer – your statement will tell you what it is. If you only pay the minimum each month, your debt could take a long time to clear. That’s because your minimum payment is calculated as a percentage of your balance – so it decreases as your balance decreases.

    If you only use your card for purchases and you pay your balance in full and on time each month, you will not usually pay any interest. However, if you have transferred balances and aren’t in a promotional period, or have taken out cash, interest will be charged even if you pay your balance in full. You should also be aware that interest rates are variable and may change.

    If you don’t make at least the minimum repayment each month you’re likely to be charged a late payment fee.

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  4. When do I have to pay?

    Your credit card issuer will give you a payment date on your monthly statement – this is the date by which they must receive your payment.

    When you make your payments, leave enough time to make sure the funds arrive before the payment date. The amount of time it takes for your payment to arrive will depend on the payment method you choose so if you're unsure you can check with your card issuer or banking provider.

    Some credit card issuers will allow you to alter the date when your payment is due so that it’s charged to you at a convenient time in the month.

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  5. How do I make a payment?

    There are many different ways available to make a payment to your credit card. You can find a full list of payment methods to help decide which is best for you.

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  6. What Direct Debit options are available to me?

    There are three Direct Debit options:

    • Full payment – this will collect the total balance shown in your monthly statement.
    • Minimum payment – this will collect the minimum payment shown on your monthly statement. Paying this way means you can avoid late fees but will usually mean you’ll be charged interest on your outstanding balance. To help reduce interest charges you can make an extra payment on top of your Direct Debit.
    • Regular monthly amount – this allows you to choose a fixed amount or a fixed percentage you want to pay each month. If this is less than the minimum payment most credit card issuers will automatically increase the payment to the minimum amount.

    Paying by Direct Debit is a timesaving and simple way to pay your monthly credit card bill. You don't have to worry about missing that monthly payment, provided you have the available funds in your current account, once a Direct Debit is set up on your account.

    If your Direct Debit payment is set up to collect the full amount each month most credit card issuers will not charge you interest on your purchases.

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  7. What is a credit balance?

    If you have a credit balance, it means that you don’t owe any money on your credit card account. In fact you are owed money. In most instances this can happen if you’ve had a refund on something. If you have a Credit Balance on your Lloyds Bank Credit Card Account please call us on 0345 606 2172 (+44 1702 278 272 from abroad)to request a refund.

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  8. What happens if I miss a monthly payment?

    If you miss monthly payments the use of your card may be suspended and we may need to contact you. You may also be charged a late payment fee. Please note that missed or late payments will be recorded on your credit file and could affect your future credit rating. If you exceed your credit limit, your account may be blocked and you will need to pay the excess amount before, or along with, your next monthly payment. You may also be charged an over limit fee.

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