My student loan comes into my Monzo account, and I don’t want to have to bother transfering the amount I’ve spent to my HSBC debit account, which my credit card is paid in full every month from.
Is there anyway I can change the account the credit card is paid from to my Monzo account, not my HSBC debit account?
Yes, but it is a bit painful to change direct debits
That said, I found it easier to change it to Monzo than update the payment terms (e.g. pay in full vs pay minimum) from paying from Monzo
Just change the direct debit? Or have I misunderstood?
Yeah, you can do it through the desktop site (or mobile in desktop view)
Oddly they have two different electronic routes dependent on whether to pay from HSBC or other
The one for HSBC kept landing on a 404 page (!!!) which really made up my mind to move the direct debit to Monzo. That one ends up generating a PDF that it then emails to them (and me) (again !!!)
Quick question about the latter part - is it better to pay in full vs minimum? Not 100% on what the difference means.
How can I get around to changing the direct debit? Edit: Just saw you said that you can do it via the desktop site. Will try that now, thanks.
If you pay in full you likely pay more - the whole balance on the statement - but you also pay no interest
Otherwise you pay 2.5% of the balance, but accrue interest (unless it is a 0% deal like mine when paying the minimum makes more sense)
Generally it makes sense to pay it all off, as you get all the benefits and none of the downsides, but obviously is more expensive IN THE SHORT TERM
Paying it off in full is pretty much like using a debit card right? I pay for what I buy? pretty much only interested in building credit score - its a student card so not too many great deals.
Where abouts on the website can I find the area to change the direct debit?
If it is about building credit then absolutely pay it in pull each month, but make sure you can always afford it - the upsides of using the credit card are much less than a missed payment black mark
It was a bit hard to find, it being the HSBC website and all, but you click into the credit card and its one of the options below (Change Payment Terms or some such)
Think I’ve found it, thanks so much for the help
Pleased my minor pain with it earlier in the year has helped a bit here
Sorry for the many questions, want to make sure I get this right:
This is the address for Monzo right?
5 Appold Street
Right, just filled in the document. I am guessing HSBC will let me know when it is set up - will this cancel the direct debit from my HSBC account?
Cannot remember sorry (but I don’t think so)
If not, I would wait for a couple of monthly payments to come out of Monzo (and not HSBC) before manually cancelling the HSBC one
Don’t cancel the HSBC one before a payment has definitely come out from Monzo
It took around a week for Monzo to get the notification to create the direct debit (and in turn notify me) which probably is down to someone at HSBC having to read their emails…
Remember the way a credit card works is every transaction attracts interest on it from the point of purchase. However, if you pay the statement off in full, the interest is waived. In other words, if you don’t pay the full balance every month, you will be charged interest.
Don’t withdraw cash on your credit card, and finally if you do need to pay less than the full balance, always pay at least £1 more than the minimum payment – the credit reference agencies will note it if you only pay the minimum, and this fact will be visible to other lenders on your credit report.