What is Direct Debit?

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Am I Eligible To Apply For A Card?: If you meet the following criteria then you are eligible to apply for a credit card in the UK:
How is interest calculated?: Interest is calculated on a monthly basis on the outstanding balance if full payment has not been received.
Will I get charged Late payment/Overlimit fees?: All credit cards charge you if your payment is overdue.
Why is it worth making a Balance Transfer?: If you have a large outstanding balance on one or more credit and store cards – you will undoubtedly be able to save money by transferring your balance to another credit card.
My Credit Card is lost or stolen. What should I do?: If you cannot find your credit cards you need to report them as lost or stolen using the emergency number provided by your credit card issuer, this will be a 24 hour/365 days a year number. If you have more than one credit card you will need to ring all the separate companies.

Direct Debit allows your credit card company to take, according to your instructions, a variable amount of money from your bank account each month to pay all or part of your outstanding credit card balance.

Paying by Direct Debit is a very quick and easy way to make payments, and also reduces the time it takes for the credit card company to process your payments. To set up a Direct Debit you need to complete and sign a Direct Debit mandate form, this will give the credit card company permission to take payments direct from your account.

Direct Debit differs from a standing order in that the other party can vary the amount they take from your bank. With a standing order the amount is set in stone until you say otherwise. You are still in ultimate control of your Direct Debit and can cancel it at any time by either contacting your credit card issuer, or contacting your bank.

When setting up your Direct Debit, you have 3 options:

Set your Direct Debit to pay the minimum amount off your credit card bill each month - i.e. 2 % of the outstanding balance or £5, whichever is the greater.
Set your Direct Debit to pay off the total outstanding balance every month.
Set your Direct Debit to pay an agreed amount each month there is a balance on your account - i.e. a fixed amount which must cover the minimum payment.

* You will only be able to set-up one Direct Debit for your credit card account from one bank account at a time.

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