2007-03-13 15:11:22 · 14 answers · asked by Anonymous in Business & Finance ➔ Credit
NEVER send less than minimum unless you have so much money in the bank and don't care about your credit. If anything send $1.00 more and never be late on a payment. Credit will be with you all your lifetime and it is a priviledge and one you should guard with your life.
If you send less, they will hit you with a late payment and negative reporting at the credit bureau. NOT GOOD! If you don't have enough to make the minimum I suggest you cut the card in half right now, send it back to the creditor with a letter stating that you are cancelling the card at the consumers request and start living with what you have.
Don't let your credit score go down. Like I tell my children.....live like a college student for awhile and then you will feel rich again.
2007-03-13 15:18:24 · answer #1 · answered by CC 1 · 0⤊ 0⤋
Yes, because the credit company will srtill charge you a late fee, and they will start calling you to try to get you to commit to paying more. They also may cloase your account. If the minimum payment isn't paid within 30 days after it's due, they could report you as delinquesnt with the credit reporting agencies. Some cards have a system where if you are late on another card, they can impose the default interest reate on their card (23.99 to 33%).
You are better off tackling the problem head-on and calling the credit card company. They will work with you, especially if your situation is temporary. Then, you are still in good graces with them.
Either way it's a warning sign to them, and should be to you also.
Please check out this non-profit financial education website that doesn't sell anything and is strictly confidential. Take the first part of their bankruptcy training (even though you do not plan to go bankrupt), and use anb annonymous name. The results are a analysis of your overall financial situation and the various alternatives to solve the problem. The alternatives discuss the pros and cons of each choice:
www.hummingbirdcreditcounseling.org
If your credit is going to go into the topilet anyway, one method would be to stop paying them. Eventually, they will offer to settle for 40-60% of the balance, but when you settle with them, they want cash either all at once or within a few months.
Check out the website. It is very informative and there is no alterior motive other than credit/debt education.
Good luck & best wishes!
2007-03-13 15:24:59 · answer #2 · answered by jimmyjohn 4 · 0⤊ 0⤋
Yes, you will get penalties. For that matter, it's a waste of money to only send the minimum payment. When all is said and done, you will have spent from 3 to 5 times the original cost of an item.
You get a store credit card at 22% interest rate, buy a TV for $900, and pay the minimum, by the time you're done you may have spent $3000 to $5000 for that $900 TV.
2007-03-13 15:16:10 · answer #3 · answered by T J 6 · 0⤊ 0⤋
When you pay less than the minimum, you haven't paid at all in their eyes. You'll get a $35 late fee every month and your interest rate will go to 29% or more. That's why it's called a 'minimum payment'.
2007-03-13 15:21:33 · answer #4 · answered by normobrian 6 · 1⤊ 0⤋
Yes. If you pay less than the minimum payment, it lowers your credit score. If the Credit Card company sees that you can at least make the minimum & that you do it on time, that counts for a lot.
If you are having troubles tracking your personal/business financing, there are computer programs **Quicken/QuickBooks** that help.
I prefer Quickbooks, but Quicken is virtually the same but less in depth.
2007-03-13 15:15:09 · answer #5 · answered by glitzyglitter01 1 · 0⤊ 0⤋
well yes, but no,
more like yes though, THey ll still charge you a late fee more than likely and will also more than likely charge you a default APR,
If i were you I'd call up your credit card company, ask directly from the beggining to speak with the supervisor, tell them that your in a bind and that you cannot pay the full min. payment and if this month you could pay like half of the min. payment without a late payment fee.
Sometimnes they'll work with ya, sometimes not.
2007-03-13 15:18:44 · answer #6 · answered by the d 6 · 1⤊ 0⤋
No they have to at least apply it, but some credit companies charge you a fee for it. Call ahead and tell them, and ask them if there is a fee. If it will cost you more than a missed payment, just miss the payment.
2007-03-13 15:26:30 · answer #7 · answered by Together 4 · 0⤊ 0⤋
yes, because the service charge will be more than what you are sending if it is less than minimum payment
2007-03-13 15:19:49 · answer #8 · answered by kelly 3 · 0⤊ 0⤋
It is a waste of money to not pay the balance in full every month.
2007-03-13 15:15:20 · answer #9 · answered by Nancy O 3 · 1⤊ 0⤋
yes cause they will charge you for not paying the minimum
2007-03-13 15:14:24 · answer #10 · answered by angrycroak555 3 · 2⤊ 0⤋