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New Contributor
YoungJay18
Posts: 76
Registered: ‎09-23-2011

Re: Minimum Payment

so if the minmume is 25 and i pay lets say 70 thats good 

Regular Contributor
GoldenloveNY
Posts: 243
Registered: ‎02-29-2012

Re: Minimum Payment

[ Edited ]

YoungJay18 wrote:

so if the minmume is 25 and i pay lets say 70 thats good 


Yes. Try to pay as much as you can. Avoid those interest charges. But if you can only pay the min. amount, then so be it. Don't beat yourself over it.

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New Contributor
YoungJay18
Posts: 76
Registered: ‎09-23-2011

Re: Minimum Payment

ok do you happen to know if my credit will reset even with the mimum payment cause i could really use it due to the hurricane and all that

Regular Contributor
GoldenloveNY
Posts: 243
Registered: ‎02-29-2012

Re: Minimum Payment

[ Edited ]

YoungJay18 wrote:

ok do you happen to know if my credit will reset even with the mimum payment cause i could really use it due to the hurricane and all that


If you use all the credit in your card, and only pay the min. amount when it is due, then only that amount will be available for use. So let's say you have $1,000 credit limit in one card. You used the full amount, and the credit card company tells you when the min. payment is due. Let's say that min. payment is $25. You pay that amount. The only thing left for use would be $25, minus any interest they will charge for leaving a balance.

Zync from American Express- NPSL
Amex BCE- $1,000
Discover IT- $1,500
Bank of America 1-2-3 Rewards-$1,000
Chase Freedom- $500
Capital One- $500
Valued Contributor
beb86
Posts: 1,117
Registered: ‎10-31-2011

Re: Minimum Payment


YoungJay18 wrote:

ok do you happen to know if my credit will reset even with the mimum payment cause i could really use it due to the hurricane and all that


What do you mean by "reset" your credit... I have all my cards on auto payment which for me pays the MIN if I forget... but I will also pay extra where I can. 

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New Contributor
YoungJay18
Posts: 76
Registered: ‎09-23-2011

Re: Minimum Payment

like if i have a 750 balance and 25 is min if i pay the 25 will i get a 750 credit line again for the next month but continue to carry the balance

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011

Re: Minimum Payment

I don't think people explained how minimum payment and how APR works.   APR = Annual Percentage Rate

 

Let's say you had a $600 bill at 29% apr

 

 

29% is a lot but remember it's ANNUAL. as in 12 months

 

So you take 29% / 12 = 2.42% monthly 

 

If you charged $600 on the account and paid the minimum which pretty much covers the minimum interest rate  and like 1 to 5% of principle You would pay $14.52 in interest rates which is not bad on borrowed money, friends would usually charge you more if they're bastards lol!

 

They used to have minimum payments only to cover your finance charges but laws changed and they have to bring down principle a fraction of a % keeping you in debt over 20 years to pay off a balance. Now with 1% principle with minimum payments you'll be in debt for 100 months, but if you have a bank requiring a minimum of 5% towards principle you'll be in debt for 20 months.

 

remember too many people have a misconception that APR is monthly, it's annually. Now with things like car payments high interest rates can be terrible, cause people with bad credit can get 20% interest on their cars

 

so for a $10,000 car 20% interest is $2,000 so a 5 year loan you'll end up paying $10,000 JUST in interest making a total paid of $20,000 for a $10,000 car. Personally I think people are crazy if they ever even thinkn about going this route.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Regular Contributor
GoldenloveNY
Posts: 243
Registered: ‎02-29-2012

Re: Minimum Payment

I am assuming the poster meant that the avaiable credit will be "reset" to the credit limit given if one pays only the min. payment. 

Zync from American Express- NPSL
Amex BCE- $1,000
Discover IT- $1,500
Bank of America 1-2-3 Rewards-$1,000
Chase Freedom- $500
Capital One- $500
Regular Contributor
GoldenloveNY
Posts: 243
Registered: ‎02-29-2012

Re: Minimum Payment


distantarray wrote:

I don't think people explained how minimum payment and how APR works.   APR = Annual Percentage Rate

 

Let's say you had a $600 bill at 29% apr

 

 

29% is a lot but remember it's ANNUAL. as in 12 months

 

So you take 29% / 12 = 2.42% monthly 

 

If you charged $600 on the account and paid the minimum which pretty much covers the minimum interest rate  and like 1 to 5% of principle You would pay $14.52 in interest rates which is not bad on borrowed money, friends would usually charge you more if they're bastards lol!

 

They used to have minimum payments only to cover your finance charges but laws changed and they have to bring down principle a fraction of a % keeping you in debt over 20 years to pay off a balance. Now with 1% principle with minimum payments you'll be in debt for 100 months, but if you have a bank requiring a minimum of 5% towards principle you'll be in debt for 20 months.

 

remember too many people have a misconception that APR is monthly, it's annually. Now with things like car payments high interest rates can be terrible, cause people with bad credit can get 20% interest on their cars

 

so for a $10,000 car 20% interest is $2,000 so a 5 year loan you'll end up paying $10,000 JUST in interest making a total paid of $20,000 for a $10,000 car. Personally I think people are crazy if they ever even thinkn about going this route.+


+1. I couldn't have said it better myself....:smileyhappy:

Zync from American Express- NPSL
Amex BCE- $1,000
Discover IT- $1,500
Bank of America 1-2-3 Rewards-$1,000
Chase Freedom- $500
Capital One- $500
Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011

Re: Minimum Payment


YoungJay18 wrote:

like if i have a 750 balance and 25 is min if i pay the 25 will i get a 750 credit line again for the next month but continue to carry the balance


wow I'm glad you came to the boards to ask.... If you have a credit limit of $750 and you spent $750  if you do the minimum payment of $25 your look at $725 balance

 

(if no interest rates are accessed, remember most credit card companies do not charge interest for a grace period Amex gives you 25 days before interest is charged.)

 

So you would only have a balance of $25 usable credit.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758

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