Is it true that if you just pay a little on credit cards instead of the minimum, they wont report you?

Question

I'm recently unemployed, and can't pay even the minimum payments on my credit cards. If I send them 20 or 30$, is it true they wont report you to the credit agencies? I keep getting late fees for not paying the full amount, so will they report me as late?

Answer 1

Whoever told you that was wrong. Anytime you pay less than the minimum due you are in default. It does not matter if you pay less than the minimum or no payment at all. So until you pay the minimum they require they will continue to report you as late.

Since you are paying less, the minimum they require will increase every month. They will eventually "Charge Off" your account and turn it over to collections. This will usually happen after about 90 days.

The only way to avoid this is to talk to them BEFORE and see if you can make arrangements to make a smaller payment for a few months.

Answer 2

I work for a Credit Card company in Canada, please take my advice. CALL THEM TO MAKE PAYMENT ARRANGEMENTS ASAP. They can help you! If you avoid them, they don't know your situation, therefore they will report you to the Credit Bureau for late payments once you are 30 or 60 days late (different companies report at different times). Past due is past due, regardless of what the dollar amount is. Interest will accrue if you can't make your full payments, but as for HOW MUCH you have to pay each month, they can change that!

Answer 3

Call the companies and work out a payment plan. If you take the step of contacting them with your situation they can possibly do something at their end.

Answer 4

They'll still report you for late payments, but what you'll do is stop it from going to collections.