Making min credit card payment

[longtimelurker]

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@Anonymous wrote:

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

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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.

[takeshi74]

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@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.

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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.

[Anonymous]

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.  

[red259]

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@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.  

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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. 

[twiddledee]

What is AA?

[Anonymous]

Adverse Action

[Anonymous]

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

[Anonymous]

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.