topic Making min credit card payment in Credit Cards

Making min credit card payment

red259 — Tue, 03 Mar 2015 05:41:26 GMT

I'm waiting on money to become available to pay my chase hyatt card, which is due tomorrow. I want to make the bare minimum payment and then I will PIF next week. I normally pay double the minimum and never carry a balance on a card that is not 0%apr. Would chase react to this, or would they only react if I pay the minimum only for a couple of cycles? The balance is like 1k on a 21k card.

Re: Making min credit card payment

Anonymous — Tue, 03 Mar 2015 05:59:18 GMT

@red259 wrote:
I'm waiting on money to become available to pay my chase hyatt card, which is due tomorrow. I want to make the bare minimum payment and then I will PIF next week. I normally pay double the minimum and never carry a balance on a card that is not 0%apr. Would chase react to this, or would they only react if I pay the minimum only for a couple of cycles? The balance is like 1k on a 21k card.

I'd do 2x min.

Re: Making min credit card payment

Anonymous — Tue, 03 Mar 2015 06:17:00 GMT

When is your due date?

Is the bill due now and next week is another statement, or is this week and next week in the same statement?

If your bill is due now and all you have is the minimum of course pay the minimum. That keeps your account current. Then pay it off. It's no big deal. Everyone doesn't pay huge payments every month.

Re: Making min credit card payment

Anonymous — Tue, 03 Mar 2015 07:16:45 GMT

pay minimum +1 dollar. the last time i pulled a detailed credit report for myself (and i've only done it twice), the payament history was marked as either late, paid minimum or paid more than minimum. i think if you just pay just a bit more than minimum (which i did for a while) you will be ok.

Re: Making min credit card payment

score_building — Tue, 03 Mar 2015 07:36:09 GMT

@Anonymous wrote:
@red259 wrote:
I'm waiting on money to become available to pay my chase hyatt card, which is due tomorrow. I want to make the bare minimum payment and then I will PIF next week. I normally pay double the minimum and never carry a balance on a card that is not 0%apr. Would chase react to this, or would they only react if I pay the minimum only for a couple of cycles? The balance is like 1k on a 21k card.
I'd do 2x min.

So would I, ideally, bare minimum of 2x to maximize internals/repayment score and to minimize shadow of doubt are inching one step closer to AA.

While the x more than min pay can at least prevent a min pay notation, the majority of issuers have sophisticated metrics in place which quantify percentage of outstanding balance paid in a statement period and over time.

Re: Making min credit card payment

Anonymous — Tue, 03 Mar 2015 07:43:01 GMT

@score_building wrote:
@Anonymous wrote:
@red259 wrote:
I'm waiting on money to become available to pay my chase hyatt card, which is due tomorrow. I want to make the bare minimum payment and then I will PIF next week. I normally pay double the minimum and never carry a balance on a card that is not 0%apr. Would chase react to this, or would they only react if I pay the minimum only for a couple of cycles? The balance is like 1k on a 21k card.
I'd do 2x min.
So would I, ideally, bare minimum of 2x to maximize internals/repayment score and to minimize shadow of doubt are inching one step closer to AA.
While the x more than min approach may at least prevent a min pay notation, the majority of issuers have sophisticated metrics in place which quantify percentage of outstanding balance paid in a statement period and over time.

One min payment every once in a while ain't gonna hurt. For some it's just a way to get that bill out of the way until the next paycheck comes and they can pay in full or a significant portion of the balance.

Re: Making min credit card payment

score_building — Tue, 03 Mar 2015 07:50:24 GMT

What is probably of more significance is if a min pay occurs in the absence of any additional payment during a statement period, particularly a pattern of only min pay over time...although sometimes an out of pattern minor internal ding like min pay can lead to unintended consequences, is generally not the only or primary factor if things head south.

Re: Making min credit card payment

Anonymous — Tue, 03 Mar 2015 10:13:23 GMT

I'd say making mininum payment once then paying the rest of the balance. It's better than say racking up a lot of debt and only making the mininum payments which makes it more hefty because of interest rates and that you don't have a lot of credit to utilize. If I could change a few things, it would be I would had tried to get credit as soon as I turned 18 rather than wait awhile or not try to get a basic secured card or a card with a smaller limit and watch it grow. I saw a $300 Capital One credit card limit increase to $2,500.

Re: Making min credit card payment

Anonymous — Tue, 03 Mar 2015 12:29:32 GMT

I know Chase has a rep, but don't overthink these things. It is fine

Re: Making min credit card payment

Anonymous — Tue, 03 Mar 2015 12:52:56 GMT

Id pay the minimum if that's what you have. I was always a $50 man. If i could not pay a chunk id pay $50 which was always higher than my min...

The reason you have a minimum is because that's what the bank expects. If you get an AA because 1 min payment then they probably don't trust the limit they gave you in the first place.

Re: Making min credit card payment

Anonymous — Tue, 03 Mar 2015 13:46:13 GMT

@Anonymous wrote:
I know Chase has a rep, but don't overthink these things. It is fine

THIS!

Remember the banks (yes, even Amex) AREN'T monitoring you just to see if you break one of the unwritten rules so they can take AA. Banks care about risk and then profiitibility, they won't take AA unless they perceive risk and a single minimum payment isn't going to do that. Lots of people pay the minumum every month, incurring a lot of interest charges, and that is fine from the bank's viewpoint, in the absence of other indicators of risk.

Re: Making min credit card payment

takeshi74 — Tue, 03 Mar 2015 14:21:32 GMT

@red259 wrote:
Would chase react to this, or would they only react if I pay the minimum only for a couple of cycles? The balance is like 1k on a 21k card.

Probably no big deal even with a couple of minimum payments. IMO you should be considering payment along with utilization over time. 1/21 is about 5%. A couple of months at 5% (assuming your utilization isn't increasing) doesn't seem like a signiificant risk -- versus, say, being well over 30% for 6 months with minimum payments and an increasing balance.

Re: Making min credit card payment

Anonymous — Tue, 03 Mar 2015 14:15:36 GMT

As long as the minimum isn't all you're paying, it should be fine. I payed $100 on my Freedom card last week when it was due (Min $25) and will pay $400 this week when the paycheck arrives. I am still in the 0% interest period until January, but I plan on having it paid off well before then.

Re: Making min credit card payment

red259 — Tue, 03 Mar 2015 23:19:59 GMT

@Anonymous wrote:
As long as the minimum isn't all you're paying, it should be fine. I payed $100 on my Freedom card last week when it was due (Min $25) and will pay $400 this week when the paycheck arrives. I am still in the 0% interest period until January, but I plan on having it paid off well before then.

Yea I think 0% APR cards are a totally different scenario. I wouldn't do business with a lender that shuts me down for making mininum payments on a 0% APR.

Re: Making min credit card payment

twiddledee — Wed, 04 Mar 2015 18:30:51 GMT

What is AA?

Re: Making min credit card payment

Anonymous — Wed, 04 Mar 2015 18:34:52 GMT

Adverse Action

Re: Making min credit card payment

Anonymous — Wed, 04 Mar 2015 18:41:26 GMT

With only a $1K balance on a $21K card, I wouldn't worry about it.

Re: Making min credit card payment

Anonymous — Wed, 04 Mar 2015 18:46:27 GMT

Occasional minimum payments are very unlikely to lead to AA. The interest is not always a smart choice, but sometimes it can be an unavoidable choice. As long as you are not making minimum payments on a regular or semi-regular basis, you are probably fine.