10-26-2012 03:25 AM
every time i pay my credit card i see that it asks me if i want to pay Minimum Payment since im new to credit cards i never really bothered to learn what it is if i do pay the Minimum Payment for what ever reason is it bad for your credit score or anything like that
10-26-2012 04:12 AM
If you pay the minimum payment you will pay interest on your purchaes starting from the beginning of that billing cycle until you've gone through a whole cycle after you've paid you account in full.
10-26-2012 04:21 AM
And hard on your wallet!
10-26-2012 05:59 AM
so for example lets say my balance is $600 i wil have to pay the $600 plus the lets say $40 intrest ??
and basically it is very bad for my credit
I don't believe that paying the minmum is necessarily bad for your credit. Not paying at all or not paying on time is bad for your credit. Some people pay only the minimum every month with no issues while others (myself included) PIF each month. Paying the minimum simply means you pay more and, let's face it, who wants to do that? There are times however when you can only pay the minimum and it is nice to have that flexibility. As long you pay AT LEAST the minimum, you and your credit will be fine.
10-26-2012 06:34 AM
10-26-2012 07:40 AM
Yep. Minimum payment is the absolute lowest payment they're asking for to keep your account in good standing. You can draw out your payments as long as you'd like, but you're on the losing end as they're making a killing off you with interest charges. If you absoutely have to carry a balance, pay MORE than the minimum if you can. If you can't afford that, at least make the minimum until you can PIF.
10-30-2012 05:55 PM
Making the minimum payment does not have a direct negative impact on your scores at all.
What it does do like others have said is put you in a position to pay interest on those balances and your UTIL is impacted.
Personally, when I have to settle for a minimum only payment on any account I add the interest on top of it.
Example: Minimum payment is $25 - interest on that account this month is $11 - I pay at least $36 (if not a little more).
As long as you make at least the minimum payment the account is in good standing and will report as such.
10-30-2012 06:03 PM - edited 10-30-2012 06:04 PM
The Min. Payment is the just the amount the credit company is asking to maintain your account in good balance. This isn't so bad if you just open a credit card and you recieved a "no apr promotion" for a specific time period. You can pay the min. payment and will not be charge interest. I generally will avoid this if you are not in a promotion period in any of your credit cards. I say pay MORE than the minimum payment (if you can't pay in full) to quickly resolve your debt and avoid the unneccessary interest charges. I know the sitution can be different for some, but try to pay more if you can.
I also can't help but wonder how a credit company percieved one who have a balance lingering in their account for a long period of time, paying only the min. amount.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.