topic Re: Minimum in Credit Cards

Minimum

Anonymous — Tue, 28 Jul 2015 21:16:45 GMT

Do you pay only the minimum amount due on your credit cards? I was doing this for nearly 2 years, but I started paying about 200 on each card every month since May. Just curious how many people only pay minimum due.😊

Re: Minimum

OmarGB9 — Tue, 28 Jul 2015 21:18:53 GMT

Never. Always at least double the minimum. Way before due date. Sometimes I even make multiple payments per month.

Re: Minimum

kdm31091 — Tue, 28 Jul 2015 21:21:05 GMT

As in pay the minimum and carry a balance? Not a good thing, as interest wipes out any rewards/benefit you get.

Now, I won't say I have never paid interest because I have. I typically only carry a balance during 0% promos and there's no reason to rush and PIF. But stuff happens and I've had to carry balances. For this purpose I usually use Discover as it's my lowest APR and they seem to almost love me carrying a balance as I noticed I got more CLIs during that time. But could be coincidence who knows.

Anyway, I try to PIF whenever possible and if it's not possible then I get the balance down as low as I can. Minimum payments are never good. A friend who works for BOA says that accounts with habitual minimum payments are flagged in the system and it probably gets you "looked at" more closely. So paying above the min to at least stay off the radar is probably good if indeed you do need to carry the balance. But obviously you should never carry a balance if you can help it

Re: Minimum

Anonymous — Tue, 28 Jul 2015 21:21:50 GMT

I pay a couple days to a week before the due date. I was making multiple payments a month, but now I just wait, and pay a bigger payment.

Re: Minimum

Anonymous — Tue, 28 Jul 2015 21:23:34 GMT

I do carry balences, but usually only like 70-100 dollars.

Re: Minimum

kdm31091 — Tue, 28 Jul 2015 21:24:55 GMT

@Anonymous wrote:
I do carry balences, but usually only like 70-100 dollars.

At that level, your rewards probably aren't totally diluted but carrying any type of balance does reduce the value of your rewards.

Re: Minimum

Anonymous — Tue, 28 Jul 2015 21:29:40 GMT

I try to leave balences with certain cards, because I hear certain banks like balences, esp for cli's. Amex will probably be the only one I will pif, because they dislike balences.😊

Re: Minimum

kdm31091 — Tue, 28 Jul 2015 21:31:04 GMT

@Anonymous wrote:
I try to leave balences with certain cards, because I hear certain banks like balences, esp for cli's. Amex will probably be the only one I will pif, because they dislike balences.😊

Just dont get too caught up in who "likes" and "dislikes" balances. Amex disliking balances is a total myth. Like any issuer, yes, they dislike someone charging up 90% of their limit and then paying the minimum but reporting and carrying a reasonable balance with them was never an issue for me

Re: Minimum

Anonymous — Tue, 28 Jul 2015 21:34:44 GMT

Good to know! You always have the best advice imho! 😊

Re: Minimum

Anonymous — Tue, 28 Jul 2015 21:43:04 GMT

I have a balance with amex at the monent. like 50% the CL. Only because i have 0% APR though. otherwise it'd be much less if any at all.

Re: Minimum

Anonymous — Tue, 28 Jul 2015 21:49:16 GMT

yeah i carry a small one with amex because of the 0% (limit is $2k and i just paid down my $685 balance to $485)

Re: Minimum

-Cal- — Tue, 28 Jul 2015 21:55:24 GMT

Some lenders will take adverse action if you only pay the minimum balance such as balance chasing CLDs.

P.S. this thread could use a better title

Re: Minimum

Anonymous — Tue, 28 Jul 2015 21:56:36 GMT

yes it could... the title is like "huh?!" lol

Re: Minimum

Anonymous — Tue, 28 Jul 2015 21:58:52 GMT

@-Cal- wrote:
Some lenders will take adverse action if you only pay the minimum balance such as balance chasing CLDs.

P.S. this thread could use a better title

The ambiguous title makes you click it to find out more though

Re: Minimum

SunriseEarth — Tue, 28 Jul 2015 22:07:19 GMT

@Anonymous wrote:
Do you pay only the minimum amount due on your credit cards? I was doing this for nearly 2 years, but I started paying about 200 on each card every month since May. Just curious how many people only pay minimum due.😊

Not since I joined the myFICO Community and learned more about how credit worked, especially UTIL and internal scores. If you must carry a balance, I would pay as much over minimum as you practically can, especially if APR is a factor.

Re: Minimum

Anonymous — Tue, 28 Jul 2015 22:21:33 GMT

@Anonymous wrote:
@-Cal- wrote:
Some lenders will take adverse action if you only pay the minimum balance such as balance chasing CLDs.

P.S. this thread could use a better title
The ambiguous title makes you click it to find out more though

Clickbait worked.

I carry a balance on my AMEX since we're still in the honeymoon 0% APR period. I still pay more than double the minimum per month, though.

For every other card, paid in full. I hate interest payments. I hate them with a burning passion.

Re: Minimum

Anonymous — Tue, 28 Jul 2015 22:24:25 GMT

The thread doesn't need a better title, because the question is, do you pay only the minimum. The leaving balence part was someone else talking about it, and it morphed into leaving a balence. 😉

Re: Minimum

Anonymous — Tue, 28 Jul 2015 22:26:09 GMT

I pay way over the minimum. I use to just pay the minimum, but realized that is no bueno. 😁

Re: Minimum

OmarGB9 — Tue, 28 Jul 2015 22:27:17 GMT

Or. Maybe you cunningly made your thread title minimum to symbolize your topic about paying the minimum.

Re: Minimum

Anonymous — Tue, 28 Jul 2015 22:28:49 GMT

balance****