If I pay the minimum amount on my credit card each month instead of paying for the full amount of my credit card that I used, will it lower my credit score?
2006-09-03 21:57:19 · 4 answers · asked by winbig 1 in Business & Finance ➔ Credit
No it will not because you are not defaulter.However you are paying interest more than 40 % to 45 % as remaining amount will attract interest.
2006-09-03 23:51:05 · answer #1 · answered by shri 6 · 0⤊ 0⤋
No! It will actually RAISE your credit score as long as you are never using more than 50% of the credit available to you and you're on time, every time, with your payments.
That said, though, it's a really bad idea to just make the mimimum payments on your credit cards. If you owe a significant amount, it will take you YEARS and cost you THOUSANDS of dollars in interest to pay them off!
A theory that I've read (and I like) is to, first of all, STOP using your credit cards, cold turkey. Then, make the minimum payments on all of your cards, but put an extra $50 a month to the card with the highest interest rate. When you finally get that card paid off, take the money that you were using to pay it off and start applying it to the credit card with the next highest interest rate. Keep doing this, and you'll eventually have them all paid off!
I hope this helps.
2006-09-04 10:06:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
wll if u pay a lil more than the min u can pay off the bill faster and it would prob lower ur score...good luck!
2006-09-04 05:03:52 · answer #3 · answered by alwayzatemptation69 4 · 0⤊ 1⤋
no, but keeping your balance over 50% of your credit line can.
2006-09-04 05:03:51 · answer #4 · answered by Anonymous · 1⤊ 0⤋