I have good credit now...but
If I pay only the minimum amount (in this case for a very long time) will I still have the same good credit as I do now at the end of paying it off ...and assuming I don't mess up my credit on a few other accounts that I have. I do pay on time, every time.
2006-12-25 15:48:21 · 7 answers · asked by Paul 3 in Business & Finance ➔ Credit
Your credit will be fine until you stop paying the minimum amount. You can also feel good knowing you're helping make the banks rich by paying all that interest.
2006-12-25 16:01:50 · answer #1 · answered by KC 4 · 0⤊ 0⤋
Only paying the minimum and never charging again will take over 30 years to pay of your credit cards. You better pay a lot more than the minimum. You better stop opening accounts too! Too many open accounts messes up your credit. One day you will want something that can't be bought on a credit card. You will want a nice car or a big house. All these credit cards being considered as available credit against your potential wages will reduce your chances of getting the big ticket items!
I had to file bankruptcy to get over my addiction to credit cards!
The day I did, the lyric IF THE DEVIL DANCED IN EMPTY POCKETS, HE'D HAVE A BALL IN MINE raced through my head all day! God had a tremendous sense of humor! He was telling me I had messed up BIG TIME!
2006-12-26 00:04:12 · answer #2 · answered by Anonymous · 0⤊ 1⤋
You can pay the minium without it hurting you credit. Credit card companies love that. What will hurt you is being late, using more than 50% of avaialble credit, credit to income ratio.
I suggest paying the minimum on time as your lowest passible option. Better if you pay twice the amount or more.
Good Luck!
2006-12-25 23:56:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
you may have the same good credit rating, but you will never pay off your card paying only the minimum amount. the minumum amount is mainly applied to interest and not your principle balance.
2006-12-25 23:58:32 · answer #4 · answered by pandora078 6 · 0⤊ 0⤋
yes. if you pay the min, it will build your credit. The banks or credit card companies look at payment faithfulness. and paying the min. every month shows that.
2006-12-26 00:34:30 · answer #5 · answered by Starry Eyes 5 · 0⤊ 0⤋
In short "yes," but you might not qualify for more loans because these present ones are not being paid off quickly.
See web links below for more information:
http://en.wikipedia.org/wiki/Credit_rating
http://www.investorwords.com/1209/credit_rating.html
2006-12-25 23:58:56 · answer #6 · answered by Alletery 6 · 0⤊ 0⤋
make the minium payment twice a month it will go down faster pay off as soon as u can
2006-12-26 00:48:27 · answer #7 · answered by sportlvr45 4 · 0⤊ 0⤋