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Member
sjf0sauf09u109
Posts: 16
Registered: ‎10-12-2012
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making minimum payments = negative account?

if you make minimum payment or something less than statement balance
but pay on time, is it considered negative account on credit report?

Will the Current Status say 'Pays as agreed', 'Never Late'?
What about the payment history boxes? will it say 'OK' or other thing like 'Minimum'?

Sounds stupid asking those but I was wondering if paying on time is only requirement
to be positive account.

Thank you for your time and help!


Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: making minimum payments = negative account?


sjf0sauf09u109 wrote:

if you make minimum payment or something less than statement balance
but pay on time, is it considered negative account on credit report?

Will the Current Status say 'Pays as agreed', 'Never Late'?
What about the payment history boxes? will it say 'OK' or other thing like 'Minimum'?

Sounds stupid asking those but I was wondering if paying on time is only requirement
to be positive account.

Thank you for your time and help!



minimum payments is fine, as long as you pay that it won't be a problem, unless your with American Express then you might have your accounts closed since they're still pretty much a Charge card company...... A charge card is a card where you have to pay 100% of what you owe every month. Credit cards are ones where you can carry a balance, with Amex if you carry a large balance for more than 3 months they frown upon and and sometimes close all your accounts depending on situation. especially with new accounts, but with long relationships they might let it slide.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Regular Contributor
luckelle
Posts: 168
Registered: ‎12-05-2007
0

Re: making minimum payments = negative account?

If your paying at least the minimum youll get Payed as agreed on the trade line. If you want your scores to keep going up you need to pay a lot more than the minimum or it will look like you cant handle the balance you already have when it comes time for a CLI

Starting Score: 5/2012 TU 595, EQ 565, EX fako 547
Current Score:as of 9/2012, TU 626,Walmart 612, EQ 600, EX fako 623
Goal Score: 640 by dec 2013
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When all else fails pay it!


Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: making minimum payments = negative account?

[ Edited ]

luckelle wrote:

If your paying at least the minimum youll get Payed as agreed on the trade line. If you want your scores to keep going up you need to pay a lot more than the minimum or it will look like you cant handle the balance you already have when it comes time for a CLI


Doesn't really matter if you pay the minimum for your scores, since the card act you have to pay 1% to 5% + interest fees.

 

 

 

Fico doesn't carry a history of how your account was used, just if you were late or not. You would have the same score in 99 months if you used and paid off every month vs carrying a balance for 99 months. Once it's paid off and you'll get a score accordingly.

 

 Of course if your planning on buying something big and needing loan or applying for another credit card it's a good idea to pay it off sooner, but just cause you keep high balances doesn't mean your credit score won't keep going up once it's paid off.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: making minimum payments = negative account?

As long as you make the minimum payment the account will remain in good standing.  It might not look good if you were to app for more credit however if you have an account that's maxed out and you're making minimum payments.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
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Valued Contributor
beb86
Posts: 1,115
Registered: ‎10-31-2011
0

Re: making minimum payments = negative account?

Min payment is just that...the minimum payment allowed to keep your account in good standing....and with AMEX there revolvers work the same way
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Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: making minimum payments = negative account?


beb86 wrote:
Min payment is just that...the minimum payment allowed to keep your account in good standing....and with AMEX there revolvers work the same way

they do and they don't lol, if you carry large balance for 3+ months they like to shut your accounts lol, amex has too much charge card roots, 0% transfers are a trap!


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Valued Contributor
kevinjjc
Posts: 1,375
Registered: ‎01-14-2009
0

Re: making minimum payments = negative account?

Making minimum payments will keep your account positive, but don't expect any CLI's, and you might get balance chased.
Moderator Emeritus
webhopper
Posts: 7,225
Registered: ‎09-16-2011
0

Re: making minimum payments = negative account?

Making minimum payments will not cause your account to be reported negatively to the 3 bureaus.

Its really not a great habit to get into; so use sparingly :smileyhappy:

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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Established Contributor
namvet
Posts: 866
Registered: ‎09-22-2011
0

Re: making minimum payments = negative account?

If you are planning on making app for another credit card, making minumum payments on existing cards in the 6 months prior to the application for the new card may result in a decline or reduced credit line.  I agree with other posters about the score effect.  So YMMV.


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