Minimum payments??

[Anonymous]

I was just discharged from ch7 in November and I'm working on my rebuild. I have a cap one qs and credit one plus various store cards. Will paying the minimum amount due hurt this process? Or does it hurt the chance of cli's overtime? Thank you for reading!

[Anonymous]

My focus would be paying what I need to pay in order to keep my utilization below 10%. I think that it can be different for everone depending on what goals they have set for themselves. I have gotten CLI's carrying a balance and I have also gotten CLI's while PIF so it could vary with lenders. Try doing what would give you the best possible score and to me that would be no missed payments and keeping my utilization under 10%.....

[Anonymous]

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@Anonymous wrote:
I was just discharged from ch7 in November and I'm working on my rebuild. I have a cap one qs and credit one plus various store cards. Will paying the minimum amount due hurt this process? Or does it hurt the chance of cli's overtime? Thank you for reading!

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Well, first of all you should try not to spend more than you are able to PIF (pay in full) each month.

If you are only paying the minimums it will not directly hurt your scores, but the higher reporting UTI will lower it a bit.

Only paying the minimums WILL lower your chances of a CLI and kill your chances of a good CLI, since they like to see that you can handle the higher payments before they are required.

I know that Credit1 is serving a puropse since you are just out of BK, but get rid of it as soon as you are able. They are vultures! It sounds like you are off to a good start for your rebuild. I would hang out in the garden for a while now and let those + accounts do their job.

[Anonymous]

It stands to reason that making only minimum payments would yes hurt CLI's.  If the limits are already low then you may get some luv here and there, but I wouldn't expect much.  Just my opinion.

You can definitely get them while carrying balances if paying a lot more than the minimum, that much I know for sure.

[Anonymous]

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@Anonymous wrote:

It stands to reason that making only minimum payments would yes hurt CLI's.  If the limits are already low then you may get some luv here and there, but I wouldn't expect much.  This is my opinion following common sense approach, I don't have evidence to support this.

You can definitely get them while carrying balances if paying a lot more than the minimum, that much I know for sure.

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I do... 2 past CLI denials due to "Your average monthly payment has been too low"  

[Anonymous]

Wow great tips guys ....especially about credit one I will close this one soon as I can thanks!