If I don't have all the money one month my bill comes, and I just pay the minimum balance, will that be negatively reported on my credit report?
2006-09-09 15:45:36 · 13 answers · asked by Aaron W 2 in Business & Finance ➔ Credit
I'm thinking NO. As long as you pay the minimum, you're good. 2 years ago, while I was in college, I worked at Walmart, and there was a 24 year old couple there that made $6.53 an hour each. They were over $10,000 in debt (all from store credit cards and regular credit cards) and the woman told me they only pay the bare minimum every month, have for years (since they make only $6.53/hour, that's all they can afford). Imagine my surprise when they went to a car dealer and got approved for $16,000 for a brand new pontiac vibe. They got to pick out the color and everything. They got the loan because of their perfect credit (they had no cosigners).
So that's what's making me think it won't show up negatively on your credit report!!
:)
2006-09-09 16:06:42 · answer #1 · answered by nicoleissofun 2 · 0⤊ 1⤋
No. As long as you pay the minimum, your credit will be fine. (Of course, assuming you do not pay late, or go over your credit limit. Those things are more likely to affect your credit score.)
However, paying the minimum isn't the best strategy for paying off your debt. Sometimes most of the minimum amount covers the interest and only a small amount of the principal debt. A good rule of thumb is to pay 3x your minimum to make a dent in your debt.
Also, using most of your alotted credit (eg., using $4500 on a card with a $5000 limit) will negatively affect your credit score. Try no minimize this.
Good luck.
2006-09-09 15:51:19 · answer #2 · answered by truthyness 7 · 0⤊ 0⤋
No, but I wouldn't recommend doing that on a regular basis. If you commonly pay your card off or pay several times the minimum and one month you simply need to hang onto that money, it's not going to cause a problem. The minimum payment is the minimum you can pay to remain in good standing. There's nothing negative that will be reported as long as it's received on time.
2006-09-09 17:48:37 · answer #3 · answered by misslabeled 7 · 0⤊ 0⤋
As long as you pay the minimum specified payment on time, it won't hurt your credit.
However, it will take you a LONG time to pay off your debt if you only make the minimum payment. It's MUCH better for your long-term financial health to arrange your debt (even if it means not having all the toys you want) so that you pay it off as promptly as possible.
2006-09-09 15:55:23 · answer #4 · answered by sandislandtim 6 · 0⤊ 0⤋
A portion of your fico score is calculated based on the percentage of your total available credit in use. Making minimum payments are not neccessarily harmful but having balances at or near balances is VERY bad.
See http://finance-girl.blogspot.com for useful info involving your credit.
2006-09-09 21:37:19 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Probably - they look for ANY excuse to lower your credit score so they can charge more. Try to pay at least a little more than the minimum if you can.
2006-09-09 15:48:20 · answer #6 · answered by Random Precision 4 · 0⤊ 0⤋
Your balance on your credit cards does impact youre credit rating. If you are only paying the minimum, it is probably because you are maxed out. When you are maxed out, it influences the credit score you receive.
2006-09-09 15:48:54 · answer #7 · answered by greeneyedprincess 6 · 0⤊ 1⤋
No, as long as you are paying on time. But remember, paying only the minimum will cause you to pay finance charges (interest) on your purchases, so be careful.
2006-09-09 16:26:02 · answer #8 · answered by Jason 3 · 0⤊ 0⤋
not per se, but higher credit card balances will hurt, and not paying much will cause you to pay more interest through time
2006-09-09 16:44:56 · answer #9 · answered by Dwight D J 5 · 0⤊ 0⤋
As long as you make the minimum. it won't. It's when you get behind that it starts to show up negatively.
2006-09-09 15:49:02 · answer #10 · answered by youngblade 2 · 0⤊ 0⤋