Hello to all. I haven't used credit cards for a long time, but a customer service agent explained the "minimum payment" thing to me today. Basically, she said that this was a charge to keep the account current and to avoid late fees. She said that I had to pay this even if I don't charge anything. I'm sure others will know what I am saying and I don't want to sound dumb, but I haven't used credit cards that much. She also said that when I do charge something, charging at least $15.00 would be wise. This is a Capital One card.
The other thing is that I am the secondary account holder and would like to get my own card with me as the primary holder, however, I know that Capital One will do a "hard" inquiry ( I think) and that will lower my score ( I think) and that if I do get another card, that will lower my score more even if only a few points. I am currently saving for a down payment on a home and would like to get the best rate possible and I know that scores will play a huge role in that. Right now my scores are 680 (Equifax, was 702, but student loan report dropped it), 698 (Transunion), and 715 (Experian, was 730 but car note dropped it some), which is why I am hesitant to get my own card, although I keep getting offers from Capital One. I make all payments on time, haven't missed a payment, and try to be as responsible as possible with my credit. Any opinions, advice, comments are welcomed. And thank you!
And Cap 1 will pull from all CRA = 3HP's
It's a minimum payment. The card doesn't have an annual fee.
I won't be looking to get a mortage until sometime next summer and rates will probably have gone up (even minimal by then depending on what the Fed does). She also said that once I use all of the available credit, the primary acount holder has to ask for the increase, and they usually gives increases anyway by reviewing accounts periodically if your account is in good standing and payments are made on time. So I guess when my available credit is $0.00, I would no longer have a minimum payment?
I also asked her about the interest charge because I pay my bill when it comes out. I was wondering if I were able to pay the bill faster would the interest charge still apply. I don't think she gave me a clear answer though. Perhaps this is the simply the cost for making charges? Like I said, I'm still sort of new to this. All I know is that I pay everything on time and in full.
Oh, and she said I would have to pay off the balance to get the full credit limit back, but isn't that like giving money away, like when I pay the $15.00 even when I don't use the card?
So what you're saying is that if I were to pay off the $100 right away, I wouldn't have the interest charges, or the $400?
Also, you said try not to charge over 50% of available credit, but wouldn't I have to try to charge it all to avoid the minimum payments? Still a bit confused on this.