Valued Member
Posts: 3,854
Registered: ‎01-10-2008
not fer nuthin' but "paying more than the minimum" means next to nothing

This is not news but so many recent posts seem to hinge on this dubious distinction that it is high time to post a reminder that 'paying more than the minimum' does NOT necessarily protect one from much of anything, it depends on the actual numbers.


For eg., paying a minimum of 6% of outstanding balance can be a much more relevant way to gauge payment history record, as currently citibank for eg., will grade a payment of about 6% of outstanding balance as "very good" or "excellent" and grade down from there.   


In too many cases, just paying a little more than the minimum, may not be enough to get out of debt in a reasonable time frame and is not an effective way to contextualize debt/ payment...this type of thinking may in fact overexpose one to AA...better off using a yard stick the issuer may use in the current climate IMHO.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover