What I'm asking is this: I am rebuilding my credit from a bankruptcy. I have a credit card with a 300.00 limit. The minimum monthly payment is 40.00 a month. If I pay the whole balance off, and don't use to card but choose to keep the account active, how will my minimum monthly payment be applied to my account?
2007-10-31 09:48:32 · 10 answers · asked by sarah m 2 in Business & Finance ➔ Credit
if your balance is zero, you don't have to make any payment that month
2007-10-31 09:59:35 · answer #1 · answered by Anonymous · 0⤊ 1⤋
In most cases, your minimum payment would be $40, if your balance is greater than $40. If you have a lower balance, just pay it off. If your balance is at $0, you should have no payment what so ever. I
f you continue to get a "fee" for just having the credit card, I'd look into canceling it. Paying something for nothing is not what you need right after a bankruptcy.
If you are looking to build your credit, your best bet is as follows.
#1 Don't buy anything you cannot afford to pay cash for, you are just getting out of bankruptcy, don't immediately go down that path again.
#2 However...to build your credit rating, purchase it with the credit card, but pay the bill down on the next statement.
In this manner, you're not living beyond your current means, but you are still building a new credit history without accruing interest fees.
Once you are "back on your feet" so to speak, you might want to do the occaisional purchase that takes 1 or 2 payments to take care of. Your credit rating will not go up if you are showing zero credit activity.
2007-10-31 09:57:32 · answer #2 · answered by Chris N 3 · 0⤊ 1⤋
The minimum payment is never more than the total account balance. If you pay off the entire balance and do not use the card, the minimum monthly payment would be $0 if there are no fees, or no more than the total of the fees (and the interest on any unpaid fees), if there are fees.
2007-10-31 12:08:56 · answer #3 · answered by StephenWeinstein 7 · 0⤊ 0⤋
The minimum payment is not a set amount. It changes with your balance. It's usually based on 2% or 3% of your balance.
So if you pay the account in full, your minmum payment would be 0.
2007-10-31 12:07:15 · answer #4 · answered by bdancer222 7 · 1⤊ 0⤋
Ok if you currently owe 300.00 and you pay $300.00 then that will leave you with a zero balance and their isn't a minimum monthly payment on a zero balance.
-300.00 + 300 = 0 hence no payment
2007-10-31 09:57:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I'm not sure I understand your question. If you pay off the whole balance, you don't need to make further minimum monthly payments. The monthly payment for a debt of zero is zero.
2007-10-31 09:55:18 · answer #6 · answered by Anonymous · 2⤊ 1⤋
If you pay it off then there is no balance to pay a minimum payment on. The only way you would still have to pay them every month is if there is a membership fee.
2007-10-31 09:53:31 · answer #7 · answered by cfbjr4486 2 · 1⤊ 1⤋
if you pay off your credit card you will have no payments to make when your statement comes in.. unless there is a balance you dont have to pay. or if you have a membership fee for the credit card.
2007-10-31 09:59:01 · answer #8 · answered by Anonymous · 0⤊ 1⤋
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2007-10-31 23:00:28 · answer #9 · answered by Anonymous · 0⤊ 1⤋
If you pay it off, you will have no balance to to make payments to.
2007-11-01 02:06:23 · answer #10 · answered by Classy Granny 7 · 0⤊ 0⤋