Is it better to pay the minimum payment or pay all on your credit card?

Question

My credit card is running a special for 6 months no interest charges. Knowing this would it benefit me by paying the minimum? Will my credit score grow or does it matter if I pay the balance off every month or just the minimum?

Answer 1

It is better for your score to pay the balance in full every month. The reason for this is b/c it decreases your debt to credit ratio. You want to stay below 25%. For example, your cc limit is $1000 and your bill is $500, you have a 50% debt to credit ratio. Also, if you do not pay your balance in full by the end of the 6 months, your interest rate will most likely sky rocket. So, it is best to pay it off in full, then every month use your credit card for 1 payment such as groceries or gas then pay it off in full, ASAP. This keeps your card active with a 0% debt to credit ratio.

Answer 2

I think to have a good credit score, you need to pay the credit card bill on-time. Thus, it does not matter if you pay the minimum due or the full balance. However, to avoid the interest charges after the 6 months interest free period, I think it is better to pay off the balance every month.

Answer 3

For most, if not all, the latter is better. With your credit card running a special for 6 months no interest charges, I take it to mean that you have to pay interest plus all on your credit card only after the mentioned period. Check and/or confirm with the card issuer. Are you really better off doing so? Or it could cost you a lot more if you cannot pay all on your credit card at the end of the mentioned period. I only know that your credit score will surely suffer only if you cannot pay eventually. Have a Merry Christmas!

Answer 4

Obviously if you CAN pay off your whole balance every month, do it- they are counting on you being unable to pay in full because then they own you and can keep wringing money out of you forever.
You will never pay off your balance if you only ever make minimum payments- you'll be paying more in interest than the value of the stuff you bought.

The only reason they give you six months interest free is because they are counting on you spending irresponsibly over that period, building up a large balance you can't afford to pay in full at the end of the six-month period, and then they've got you with the interest.

Answer 5

If you have the money to pay all of it at once, then that is the best thing to do. That is what looks the best on your credit report, that you paid your bills off and maybe even paid them off early. It might benefit you by paying the minimum for the next 6 months but why? if you are able to pay the whole amount.

Answer 6

Pay your credit card on time every time that is what will keep good credit, use the six months no interest to your advantage and just pay the minium, and then pay the balance off after that.

Answer 7

Read the fine print. If you don't pay off your debt in 6 months all the interest comes back and you'll have to pay it. Their's a reason the credit cards do this...they make more money because people say "i don't have to pay" and end up paying more
PAY IT ALL OFF ASAP!

Answer 8

Perhaps you may not like this answer, my friend, but as a well wisher I would request you to Pay all the amount due, and return the Credit Card for cancellation. Living on tomorrows earning is not good or advisable..

Answer 9

Dont ever go above 50% of your cards limit, and always pay a little more than the min. balance and pay it early. That gives u a really good rating!

Answer 10

Paying the minimum never looks all that great for you.

Paying anything off always looks better.