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0% interest credit account's affect on credit score

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0% interest credit account's affect on credit score

does 0% interest credit accounts affect fico score if i don't pay them in full but instead pay them partial until the 0% interest term is over?
Message 1 of 13
12 REPLIES

Re: 0% interest credit account's affect on credit score



narendra953 wrote:
does 0% interest credit accounts affect fico score if i don't pay them in full but instead pay them partial until the 0% interest term is over?


Fico doesn't care what your interest rate is,  unlike the rest of us who do care about ours     Smiley Wink
Message 2 of 13
Senior Contributor

Re: 0% interest credit account's affect on credit score

Score will drop because debt is higher. When you pay them back score rebounds like nothing happened. Will not hurt after you pay back, in some cases it even helps history. Int % rate is not reported.

Message Edited by ilovepizza on 08-27-2007 05:50 PM
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Message 3 of 13
Moderator Emeritus

Re: 0% interest credit account's affect on credit score

0% helps....Pys off faster. More of your payment goes to the debt so each payment takes off a slightly larger chunk than it would otherwise. At least thats what I tell myselfSmiley Very Happy


Message Edited by Brammy on 08-27-2007 08:56 PM
Message 4 of 13
Senior Contributor

Re: 0% interest credit account's affect on credit score

Person A has 0% APR and charges $200 a month in new charges.
 
Person B has 39% APR, charges nothing, and incurs $200 a month in new finance charges.
 
If both have the same CL, same debt, and both pay ontime $250 a month on the card, then both are chipping away at their principle at the rate of $50 a month.
 
FICO scoring would be the same, for this account.
 
Message 5 of 13
Moderator Emeritus

Re: 0% interest credit account's affect on credit score



Noah_Bodie wrote:
Person A has 0% APR and charges $200 a month in new charges.
 
Person B has 39% APR, charges nothing, and incurs $200 a month in new finance charges.
 
If both have the same CL, same debt, and both pay ontime $250 a month on the card, then both are chipping away at their principle at the rate of $50 a month.
 
FICO scoring would be the same, for this account.
 


 
But if they have the same balance and most of my 0% have been for BTs. And neither is charging  Person A pays off 250.00 a month of their balance while person B only gets 50.00 credit on the actual balance.

Message 6 of 13
Senior Contributor

Re: 0% interest credit account's affect on credit score



Brammy wrote:
 
But if they have the same balance and most of my 0% have been for BTs. And neither is charging  Person A pays off 250.00 a month of their balance while person B only gets 50.00 credit on the actual balance.


You cannot change the rules of my inane scenarios inflight.
Message 7 of 13
Moderator Emeritus

Re: 0% interest credit account's affect on credit score


 

Noah_Bodie wrote:


Brammy wrote:
 
But if they have the same balance and most of my 0% have been for BTs. And neither is charging  Person A pays off 250.00 a month of their balance while person B only gets 50.00 credit on the actual balance.


You cannot change the rules of my inane scenarios inflight.


Why Not Noah?   I want to share the catnip!!!Smiley Very Happy

Hows this? To anyone looking it looks as if Person A is either spanking that card at 400.00 a mo to pay that much towards the balance or Person B is just barely getting by with mins...lolSmiley Very Happy
Message 8 of 13
Established Member

Re: 0% interest credit account's affect on credit score

And a person's income or net worth has no bearing on FICO scores either.  Funny world, eh? 
Message 9 of 13
Senior Contributor

Re: 0% interest credit account's affect on credit score



Brammy wrote:


Noah_Bodie wrote:


Brammy wrote:

But if they have the same balance and most of my 0% have been for BTs. And neither is charging Person A pays off 250.00 a month of their balance while person B only gets 50.00 credit on the actual balance.



You cannot change the rules of my inane scenarios inflight.


Why Not Noah? I want to share the catnip!!!
Hows this? To anyone looking it looks as if Person A is either spanking that card at 400.00 a mo to pay that much towards the balance or Person B is just barely getting by with mins...lol




hehe Smiley Happy

Message Edited by ilovepizza on 08-27-2007 11:26 PM
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Message 10 of 13