I am just starting out with using a credit card. If I make the minimum monthly payments, could a credit card company ever suddenly take your money out of your account or garnish your wages without forewarning in order to pay the full amount owed? I don't really know how credit cards work yet.
2006-12-05 05:15:39 · 12 answers · asked by Anonymous in Business & Finance ➔ Credit
Making minimum payments is a really bad idea. Not because the credit card company will come after you. They like it when you make minimum payments: it means that you pay them alot more money in the long run. Minimum payments to pay for a $100. CD player means you'll pay something like $400 for it over the long run (300 profit for the credit card company). Does that sound like a good deal?
The only time you should carry a balance at all on a credit card is if you had a real emergency and had to pay for something completely unexpected (medical problem, car repair you need so you can drive to work, etc.) Even then you should pay the balance off as quickly as you possibly can. Otherwise the best thing to do is to pay off the credit card balance in full EVERY MONTH. Othewise you're paying a huge interest rate and paying much more for everything you buy.
2006-12-05 09:36:48 · answer #1 · answered by Faeldaz M 4 · 0⤊ 1⤋
Credit card companies NEVER have access to your bank account...and, never would they garnish your wages if your making your monthly payments.....although, all the other answers are absolutely correct...by making only the monthly minimum payments....you'll be paying on the account for years to come...as well...paying a small fortune in interest. While a small credit card with regular monthly payments is a good way to increase your credit score. Paying to much in interest in no good for anyone except the credit card company! Charge small...and pay the balance off every month. thus, saving yourself interest money, and increasing your credit score all at the same time. (as long as you pay the balance every month, you won't pay any interest)....however....make sure you watch the fine print on the card application...make sure the credit card company doesn't charge you "one time activation fee" or that you aren't getting charged an "annual fee"....before agreeing to any credit agreement....always make sure you are fully aware of ALL the details of the agreement. Also...make sure they aren't charging you an outrageous interest rate! Be Careful...it's a cruel world!!!
2006-12-05 05:44:31 · answer #2 · answered by Shelly B 5 · 0⤊ 0⤋
First, not a good idea to only pay the minimum amount. Try as much as possible to pay the balance off each month.
To answer your question, as long as you continue to pay the minimum, then the credit cards will be happy to continue to give you credit, and charge you interest.
When you buy something by credit card, the credit card company pays the store. Then, you have ~ 25 days grace period to pay off that balance. If you don't, then you'll get a bill with a % added onto the balance each month.
2006-12-05 05:19:18 · answer #3 · answered by words_smith_4u 6 · 2⤊ 0⤋
nope they cant to that but i can tell you this by only paying the minimum amount owed you will have that thing payed off in like 10 years and would have given them thousands of dollars in interest. Its best to not even have credit cards..but if it is a must then dont just make the min. payment try and set a payment plan to where you can it it all payed off in as little as about 3 or 4 months.
2006-12-05 05:18:44 · answer #4 · answered by Anonymous · 1⤊ 0⤋
If you pay the minimum payment they can not take money out of your account or garnish your wages, however you will end up paying alot of money in intrest and other charges. The best thing to do to avoid intrest rates is to pay your credit card in full every month. the credit card company can only take out of your account if you dont pay your balance and it goes to collections.
2006-12-05 06:09:05 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No. To go fishing in your bank account, a number of things would have to happen:
- You would have to be in default, for being over-limit or not having made required payments.
- The company would have to go to court, sue you, and win.
- The court would have to issue a writ of attachment against your accounts. But that is routine if the CC company gets the judgment.
The right answer is: Pay the credit card bill, on time and in full, every month. Not only will this give you a sterling credit rating, it will also save you a large fortune in interest -- credit card interest rates are outrageous.
2006-12-05 05:24:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It depends on what state you live in. Making minimum payments, most likely they won't, it's only when you don't pay for months that they rob your account.
You should try to pay more than the minimum payment because you're not really getting rid of the payments, but the interest on the card. This is how people get into the cycle of debt and can't pay off their cards.
2006-12-05 05:32:35 · answer #7 · answered by Big Bear 7 · 0⤊ 0⤋
nope they can not do that . However pay a few dollars more then the minimum amount...that ways your payments get reduced every month and you don't get dinged for interst on interest paid.
remember credit card companies love earnings...and they get it from people who pay minimum
2006-12-05 05:19:57 · answer #8 · answered by serengeti 3 · 1⤊ 0⤋
No.
Making minimum monthly payments is exactly what they want since you are paying interest.
If you miss payments or are late, then they may raise your interest rate and they will hurt your credit score.
2006-12-05 05:17:34 · answer #9 · answered by the Boss 7 · 1⤊ 0⤋
certainly guy visit the financial enterprise and say i fiund this on a similar time as strolling be a stable guy dont throw it out so te guy can anticipate yet another credit card provide it in you on no account comprehend you ought to get a advantages :)
2016-10-04 22:06:29 · answer #10 · answered by greenwell 4 · 0⤊ 0⤋