topic Re: PIF in Credit Cards

PIF

SteveUrkel — Sat, 06 Apr 2013 19:26:02 GMT

Will it hurt my credit if i pay a little over the minimum payment each month?

Re: PIF

Rhaeny — Sat, 06 Apr 2013 19:30:38 GMT

No it won't hurt you credit wise just in your pocket because you'll be paying interest. If the interest is minimal I wouldn't worry about, but if the debt is substantial I'd be throwing every bit of extra money towards paying it off. Also you should always pay at least the minimum due to keep your credit in good standing.

Re: PIF

Anonymous — Sat, 06 Apr 2013 19:30:57 GMT

Will it hurt your credit if you pay a little over minimum every month?

Pretty much no - over minimum payments ensure that your balance goes down faster as a good portion of the minimum payment goes to interest. Plus it's an on time payment and that helps build responsible credit use / on time payment history.

The one way it CAN hurt your credit score(s) is obvious: your high balance, or balance in general, will affect your utilization and as you know the FICO scoring system places a large percentage of its scoring system on HOW MUCH credit you are using.

But I don't care about any of that stuff. The main priority should be making over minimum payments ON TIME if that's all you can afford to do. If you can pay more, then pay more. But above all else: PAY YOUR BILLS EARLY AND PAY THEM OFTEN!

Re: PIF

RyVision — Sat, 06 Apr 2013 19:31:17 GMT

It will show as paid as agreed and on time (if on time of course). Payment amount isn't really considered for a score, it can be seen on a manual review and if a habit, somewhat frowned upon. Utilization will affect your score but only temporarily.

So it won't really hurt your credit, it can just look a bit bad if seen by an analyst doing a manual review if it's usually how one pays most of their accounts.

Re: PIF

HiLine — Sat, 06 Apr 2013 21:17:25 GMT

@CarlosC88 wrote:
Will it hurt my credit if i pay a little over the minimum payment each month?

No. In fact, it is encouraged that you pay off your balance each month to best help your credit.

Re: PIF

Anonymous — Sat, 06 Apr 2013 21:59:54 GMT

What it can hurt is your chances with higher CLs or more cards from the same CCC.

Re: PIF

HiLine — Sat, 06 Apr 2013 22:04:47 GMT

@Anonymous wrote:
What it can hurt is your chances with higher CLs or more cards from the same CCC.

How come?

Re: PIF

Anonymous — Sat, 06 Apr 2013 22:16:58 GMT

@HiLine wrote:
@Anonymous wrote:
What it can hurt is your chances with higher CLs or more cards from the same CCC.
How come?

Uh, cause I think I misread what the OP meant when he asked this question would be why. . . >_<

Reading it again, I'm not sure if he means just paying a little over the minimum vs pay in full. Also my intial assumption was paying slightly over the minimum meant higher balance on the card.

Re: PIF

HiLine — Sat, 06 Apr 2013 22:37:00 GMT

Oh I see. I was assuming the OP meant "a little" rather than "little"