If your minmum payment for your credit card is $100.00 & if you can't make the minimum and you ask to pay lower than that or if you just send in a lower amount will this go against your credit score? My son is having trouble making the minimum payments and I was wondering if you would just send in an amount lower than the minimum or renegotiate the minumum if would mess up his credit. He wants to pay off his debt and will but needs some time to get financialy situated to do so.
Thanks for any guidance or help.
2006-09-13 07:37:43 · 6 answers · asked by ? 2 in Business & Finance ➔ Credit
Renegotiating will not hurt his score. Only making partial payments will hurt his score. He could get zapped with charges for not making a full payment. You would think that the credit card companies would be happy to get anything you can send. They could raise his APR again or still assess late fees. If his account is closed, reopen it and wait 30 days to renegotiate. If the account is closed he has no bargaining power. Also, don't take the first offer! INSIST ON TALKING TO NO LESS THAN FOUR "SUPERVISORS" !! The further up the ladder you go, the more "authority" the representative has to help. Good Luck!!!
2006-09-13 07:58:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
DO NOT just send a lower amount. If you have not pre-arranged a lower payment or payment plan, you will definately get a giant ding on your credit score, plus rack up fines and fees and an increaed interest rate.
You will probably get a slight ding if you make an arrangment, but if you make the payment on time and in full as required by the aggreement you will recover. There are services out there that can help you if you get into trouble. try Credit Counseling Services.. they may be using the name By Design. At least in CA. Your state may have something differnt. You can also check with your bank to see if they offer a service or can give you listing of some servicing your area.
2006-09-13 08:11:27 · answer #2 · answered by limgrn_maria 4 · 0⤊ 0⤋
If all you do is send less, you have not satisfied the minium payment, and they can hit you with fees and record late payments.
If you are able to negotiate lower payments, but still pay the full balance (eventually) this should not hurt your score.
If he is being hit with late fees/penalty APR/overlimit fees, he could definitely get some help from the CC by calling and setting up a monthly payment plan. Discover card even reverses those fees and cuts the APR to help you out. DEFINITELY call and see if you can't negotiate something rather than just sending in less.
Is it $100 becuase he has a high balance or becuase he's behind/over limit? That might make a difference in how much you can negotiate.
2006-09-13 10:44:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If he jsut sends less, he'll be considered late and they can report him as being late. If he and the creditor agree to a lesser amount for payment, this will not affect his credit, in any way positive or negative, at all. The only issue with it is that their minimum payment is set basically to cover the interest for that month as well as a TINY bit of principal. If he pays less, he'll probably end up just paying interest, and his debt will never shrink.
2006-09-13 07:40:54 · answer #4 · answered by dishmal 2 · 2⤊ 0⤋
making smaller payments than what they asked for will be considered late. And re-negotiating can be used against the card holder.
Maybe he should get a second job that will teach him to spend less with borrowed money.
2006-09-13 07:47:53 · answer #5 · answered by Social 2 · 0⤊ 0⤋
I was gonna answer this, but dishmal nailed it.
2006-09-13 07:44:23 · answer #6 · answered by mxzptlk 5 · 0⤊ 0⤋