carrying credit card balances

[ecxpa]

Other than PIF each month what is a reasonable amount CCC like to see paid on accounts with a balance to prevent AA and still be eligible for CLI's?  I know there is always the option to pay minimal payments but say you are carrying a $1,000 bal on a CL of  $8,000 what would be considered a good payment; or does it matter with the CCC since they are making money off of interest.

[B335is]

10x the minimum payment seems to work for me, but only on 0% cards.  If it means paying interest, I'll make the full payment and risk AA.  So far no issues.  Like everything, ymmv.

[NonSufficientFunds]

You will usually be safe when you pay twice the minimum required. 

The minimum payment is usually a very small fraction of the outstanding balance, and I believe the CCC has learned to keep an eye on those who are carrying high utilization, and only making the bare minimum payments.  That is a danger sign that the customer is probably struggling.

For that reason, until you can make more substantial reductions to your balance - send twice the required payment.  It's still a small amount, and will keep the computers happy, knowing that you are a reliable customer.

[capitalkid]

I have read 3x minimum payment and I have read 10% of the balance being carried.  So maybe somewhere in the middle of that might be good.  

[ecxpa]

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@capitalkid wrote:

I have read 3x minimum payment and I have read 10% of the balance being carried.  So maybe somewhere in the middle of that might be good.  

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I've seen the 3X minimum in a few places and that seems reasonable; I don't mind carrying a small balance for a while after all to me that's what a credit card is for. 

[Stralem]

Twice the minimum is a good guideline to go by if you can't pay in full by choice or circumstance.

For parked balances sitting on 0% cards (balance transfers, basically), I try to do more than that. But if I'm expecting a windfall, I'll just do twice the minimum and make up for the smaller payments with a larger lump sum payment. So far, no complaints from the CC companies.

[SnackTrader]

I have 6 credit cards. I have never paid a cent of interest on any of these cards. I have received a CLI on every card except for Chase (they use HPs for CLI) and have never once received AA. Credit Card companies make money off of every purchase you make with the card, so carrying a balance and paying interest is not the only profit center here. My advice would be to NEVER carry a balance, go along your merry way, and say to hell with any company who can't deal with your way of doing business. There are many other fish in the sea. Plus, since the 6 cards in my wallet come from some of the most highly sought after card issuers, my guess is that most people would survive just fine and accomplish nearly all their credit goals following that advice.

Remember, long term financial health comes from minimizing debt (or at least using it opportunistically) rather than from using it to gain status. 

[14Fiesta]

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@SnackTrader wrote:

I have 6 credit cards. I have never paid a cent of interest on any of these cards. I have received a CLI on every card except for Chase (they use HPs for CLI) and have never once received AA. Credit Card companies make money off of every purchase you make with the card, so carrying a balance and paying interest is not the only profit center here. My advice would be to NEVER carry a balance, go along your merry way, and say to hell with any company who can't deal with your way of doing business. There are many other fish in the sea. Plus, since the 6 cards in my wallet come from some of the most highly sought after card issuers, my guess is that most people would survive just fine and accomplish nearly all their credit goals following that advice.

Remember, long term financial health comes from minimizing debt (or at least using it opportunistically) rather than from using it to gain status. 

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+1

And certain CCCs like Amex for example, like to see people PIF.

[lg8302ch]

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@SnackTrader wrote:

I have 6 credit cards. I have never paid a cent of interest on any of these cards. I have received a CLI on every card except for Chase (they use HPs for CLI) and have never once received AA. Credit Card companies make money off of every purchase you make with the card, so carrying a balance and paying interest is not the only profit center here. My advice would be to NEVER carry a balance, go along your merry way, and say to hell with any company who can't deal with your way of doing business. There are many other fish in the sea. Plus, since the 6 cards in my wallet come from some of the most highly sought after card issuers, my guess is that most people would survive just fine and accomplish nearly all their credit goals following that advice.

Remember, long term financial health comes from minimizing debt (or at least using it opportunistically) rather than from using it to gain status. 

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+1

use the credit cards like debit cards and get yourself the rewards  

[Closingracer99]

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@lg8302ch wrote:

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@SnackTrader wrote:

I have 6 credit cards. I have never paid a cent of interest on any of these cards. I have received a CLI on every card except for Chase (they use HPs for CLI) and have never once received AA. Credit Card companies make money off of every purchase you make with the card, so carrying a balance and paying interest is not the only profit center here. My advice would be to NEVER carry a balance, go along your merry way, and say to hell with any company who can't deal with your way of doing business. There are many other fish in the sea. Plus, since the 6 cards in my wallet come from some of the most highly sought after card issuers, my guess is that most people would survive just fine and accomplish nearly all their credit goals following that advice.

Remember, long term financial health comes from minimizing debt (or at least using it opportunistically) rather than from using it to gain status. 

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+1

use the credit cards like debit cards and get yourself the rewards  

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Where is the fun in that when you have 0% APR