Hey guys. Im a 20 year old guy and i just got my 1st credit card a couple of months ago. What interested me to get this card was that it had 0 apr until next year. So my question is if i pay the minimum or half of my credit card statement a couple of times, will it lower my credit score? Even though it is 0 apr. Thanks a lot.
2006-07-07 13:37:43 · 8 answers · asked by monsue28 3 in Business & Finance ➔ Credit
I HAVE A JOB, SO I HAVE THE MEANS TO PAY FOR EVERYTHING. But i was just worried because i thought that somehow that if u didnt pay the full amount, that could hurt ur credit.
2006-07-07 13:50:48 · update #1
No the 0% APR will not effect your credit score. Many of the items that effect your credit score is how much debt you have outstanding and what percentage of open credit lines are used. How many credit inquiries you have had in the last 6 months. Late payments. Judgements, Liens these all effect it in a negative manner. Also, if you keep your credit maxed out month after month that could also have a negative effect on your credit score. Most financial institutions to get the best interest rates on other loans are looking for a credit score of 680 or better. Making on time monthly payments on this credit card if you are just getting started in the credit world will help increase your score. Just be smart and use the credit wisely as keeping credit in goodstanding can save you hundreds of thousands of dollars throuhgout your life time with lower interest rates on loans because you have good credit.
2006-07-07 13:56:01 · answer #1 · answered by mike d 1 · 0⤊ 0⤋
Actually, to build your credit up putting small purchases that you either pay off all at once or through a couple of payments will actually help your credit rating. What you do not want to do is be over 50% of your card's maximum limit for long especially if you are close to making a large purchase since that will reduce your outstanding credit remaining which is a portion of your credit score. The longer that you keep this account open will also help with your credit score. If you max out your credit card, or miss payments that is when your credit score starts to go down. I would suggest finding a personal fiance course to take to help you understand good money practices.
2006-07-07 23:54:44 · answer #2 · answered by andy 7 · 0⤊ 0⤋
Anytime you make less than the required payment you can expect it hurt your credit score. I would be very conservative in the use of any credit until you have consistent funds to pay for your credit card bill and can make all of your monthly bills without any problems. Credit can get you in a world hurt, real fast if you are not careful.
2006-07-07 20:46:21 · answer #3 · answered by rhutson 4 · 0⤊ 0⤋
No. If you make late payments on the credit card it can affect your credit. It can also make the interest jump up really fast. As long as you keep up with payments and don't apply for a ton of credit cards your score won't go down.
2006-07-07 20:42:10 · answer #4 · answered by streetchic78 2 · 0⤊ 0⤋
I dont think so, you will be making the monthly minimum payment so it shouldnt be a problem. Just dont get carried away with that new card!!!! Pay it off before the interest starts or you will be deep in finances charges!
2006-07-07 20:43:16 · answer #5 · answered by CoCoKauai 3 · 0⤊ 0⤋
Lateness or missing payments are the only things that will affect your credit in a negative way.
As long as you have no interest, pay as you please, but always pay the minimum payment.
Once the interest hits, pay it off monthly to avoid the interest charges.
2006-07-07 20:53:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No, if you keep it in good standing it will help your credit.
2006-07-07 20:42:12 · answer #7 · answered by Anonymous · 0⤊ 0⤋
as long as you make your payments and it doesn't matter if you pay extra
the interest rate doesn't have anything to do with your rating
2006-07-08 01:26:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋