cancel
Showing results for 
Search instead for 
Did you mean: 

making minimum payments = negative account?

tag
Anonymous
Not applicable

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!


Message 1 of 13
12 REPLIES 12
distantarray
Established Contributor

Re: making minimum payments = negative account?


@Anonymous 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
Message 2 of 13
luckelle
Regular Contributor

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
BofA Au 13000, Amazon 600, Capt1 300, Walmart 150
When all else fails pay it!


Message 3 of 13
distantarray
Established Contributor

Re: making minimum payments = negative account?


@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
Message 4 of 13
Shogun
Moderator Emeritus

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
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 5 of 13
beb86
Valued Contributor

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
Message 6 of 13
distantarray
Established Contributor

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
Message 7 of 13
kevinjjc
Valued Contributor

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.
Message 8 of 13
webhopper
Moderator Emeritus

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 Smiley Happy
FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

Goal: Gardening!


Message 9 of 13
namvet
Established Contributor

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.

Message 10 of 13
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.