This is my first credit card, and although I was paying off my balance in full each month, circumstances have led to me being able to only pay the minimum each month. My payments are always on time, however. Is just paying it on time what really matters, or does the amount of my payment count as well? I ask in relevance to my having a good credit history and score.
2006-07-01 16:40:28 · 15 answers · asked by Playwright Extraordinaire 2 in Business & Finance ➔ Credit
the minimum is acceptable as long as your paying it on time. the minimum is often better for your credit, as your credit company isn't charging you late fees, or anything like that, and its taking you longer to pay it off. a longer period of time where you are making payments on time every month is often better for your credit than paying it all in one lump sum, or paying the amount due every month. its strange, but they like to see that you can stick to a commitment every month. i think it varies with every credit company, weather or not they penalize you for only making minimum payments. but many people start out paying regularly, then only being able to pay the minimum amounts, and then stop paying altogether, because of another financial difficulty, and after that, they file bankruptcy. this is very, very regular, and you should try your best not to let it happen to you. now that you can only make the minimum payment, stop using your credit card altogether. you will never pay off the full amount owed on it if you keep using it while your only paying the minimum amount. while credit cards are great for getting you out of a jam, with an expense you cannot afford, you cannot afford anymore charges, since you cannot pay what you currently owe in the first place. please be sure you understand this concept as many Americans simply do not.
2006-07-01 16:48:51 · answer #1 · answered by ASLotaku 5 · 4⤊ 0⤋
Paying your balance in full each month does not affect your credit at all. A credit record is built by maintaining an on-time payment record, which means you must have some outstanding debt from month to month, otherwise there is nothing to report. The amount of your payment does not count as long as you pay at least the minimum amount due, on time, each month.
2006-07-01 19:29:54 · answer #2 · answered by HoneySuite 5 · 0⤊ 0⤋
as long as you pay the minimum due your ok, but that is where the interest on a credit card gets you, the interest is determinded on your balance and if you will look at when you are paying the balance due only say it was $10 only about $2 dollars goes toward the actual payment and the rest is sucked up by interest. And that's where the trouble begins.
2006-07-01 16:48:22 · answer #3 · answered by timandbren 2 · 0⤊ 0⤋
its acually better for you to keep a balance on there because it then shows you have revolving credit, if you paid it off every month no balance would ever show up on your credit report so it would just be like i have this card, and for all they know you never use it. so long as you pay the minimum or more on time every month your credit score will be fine, might even go up from what it was because now you have revolving credit. the only down side to it is you pay more in intrest over the time it takes you to pay it off.
2006-07-01 16:46:54 · answer #4 · answered by n4il_p0lish2000 5 · 0⤊ 0⤋
On time payments, and staying within you credit limit is what counts.
It's good that you have a balance, because this goes on your credit report. It shows that you are responsible.
On your credit report, it shows your limit and your revolving balance or high balance. If your balance shows as 0, it looks like you never used the card. If it shows a number lower than your limit, that's good!
Pay it off as soon as you can so you don't accrue the interest
2006-07-01 16:51:00 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Be careful, I just saw a story on 60 minutes or 48 hours and they said that credit card companies don't always state minimum
payments. I would pay a little more and that way my credit score would be very high and I wouldn't have to worry about my balance.
2006-07-01 16:59:56 · answer #6 · answered by Skip 3 · 0⤊ 0⤋
i think as long as you pay your monthly payment and are not late it shows the creditor that you are a responsible person that pays their bills on time. Of course it is best to pay off as soon as possible if your interest rate is high. But you are building credit history also. Did you know that sometimes if you call the credit card company and ask for a lower interest rate that they usually give it to you if you have been on time.
2006-07-01 16:51:46 · answer #7 · answered by paula 1 · 0⤊ 0⤋
Not paying in full means you are enriching the credit card backers. Very likely they will extend your credit limit so that you can further enrich them. Now, me, I am the kind of person credit card companies loath. All my credit cards are no fee, they have high APR's, but I don't care because I pay in full every month and a high percent of zero is still zero. All I can say is thank you. Without you, the credit card companies would not be able to survive me.
2006-07-01 16:54:44 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Pay on time and also keep the balance under 50% that is the key. It will actaully help your credit to make payments and not pay it off every month. Jus tkeep the balance below 50%.
2006-07-03 06:05:01 · answer #9 · answered by unclejesse1 3 · 0⤊ 0⤋
No as long as you make minimum payment and ON TIME... you'll be fine. By the way, I think it helps your credit to make payments... it makes you a target for other credit cards companies to try and solicit you to sign up with them as well. In other words, it helps build credit.
2006-07-01 16:44:12 · answer #10 · answered by Anonymous · 0⤊ 0⤋