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minimum payment *to start* (followed by another)?

Established Contributor

minimum payment *to start* (followed by another)?

I've read that credit card companies frown on making minimum payments, and that doing so could result in that issuer (if not other issuers) keeping a closer eye on your file (if not taking nastier AA steps).

 

Any issue with making the minimum payment (very) early in the payment cycle, followed by a much larger payment later in the billing period when  discretionary income is better known?

 

The concrete scenario: I've consolidated my debt from a few cards to one no-fee BT,  0% card.  I plan to pay the balance off well before the 0% offer expires, but don't want to even think about coming close to missing the minimum payment due date, so I'm inclined to pay the minimum immediately upon the statement cutting, followed by another, much larger payment later in the billing period.

 

 

2019 Goal: 800+ across the board (my sole 30-day late drops in Q1 2019)
2018 Goals: garden, 750+ across the board, garden, put away 3 months' savings, garden



Experian is the canary in my coal mine.

EQ7637 INQ (4 CC, 2 mort, 1 auto)
EX7388 INQ (4 CC, 2 HELoan, 2 mort)
TU8056 INQ (4 CC, 2 mort)
6/24 < 5% AAoA TBD | AoYA 0m | AoOA 19y 2m
Take the myFICO Fitness Challenge [ Last INQ 11-May-2018 ]
Gardening 'til Q1 2019
Message 1 of 9
8 REPLIES
Community Leader
Super Contributor

Re: minimum payment *to start* (followed by another)?

No expert here, but id imagine it shouldnt be a problem . You are making the minimum payment and then still making additional payments so thats creating a payment history.



Gardening since 6/13/18
Goal: No hps or cli requests at least til 1/1/19, 7/13/20 preferable
Message 2 of 9
Established Contributor

Re: minimum payment *to start* (followed by another)?

As long as your payments fall in the same billing cycle, you should be OK as they will all be reflected on the same statement for the previous 30 day activity.
Honestly, I don't even think that a month or two of a minimum payment would harm you, especially if you alternate (one month minimum, one month extra payments).
Message 3 of 9
Senior Contributor

Re: minimum payment *to start* (followed by another)?

What I do is divide the amount owed by the number of 0% months offered. I then set up an autopay for that amount ( few days before due date) and length of time. They get much more than the minimum payments and no worries of late payments on my end.
From there, I can pay extra when ever the moment feels right. It ain't rocket science.😉
FICO 8 Scores EQ=776 TU=783 EX=777 (INQ) EQ=12 TU=11 EX=11
TCL=$600K+ / AAOA= 2.9 yrs / Oldest account = 10.9 yrs
Message 4 of 9
Community Leader
Valued Contributor

Re: minimum payment *to start* (followed by another)?

What's frowned upon is paying *only* the minimum payment, although one should be able to get by with it here and there.

 

What the OP is proposing is a great idea, though, as he is paying beyond the minimum before the cycle is done.

Message 5 of 9
Established Contributor

Re: minimum payment *to start* (followed by another)?

I see no harm in someone occasionally paying only the minimum if the overall bal is decreasing.
Paying only the minimum every month and continuing to run up the balance...that would bad.
Message 6 of 9
Senior Contributor

Re: minimum payment *to start* (followed by another)?


wrote:
I see no harm in someone occasionally paying only the minimum if the overall bal is decreasing.
Paying only the minimum every month and continuing to run up the balance...that would bad.

I agree, but choose wisely the creditors to do this with. From what I've seen in the forum. The two I wouldn't do this with unless  I have no other choice is Amex and Synchrony bank. They'll slash limits or block clis until payment history is to their liking.

FICO 8 Scores EQ=776 TU=783 EX=777 (INQ) EQ=12 TU=11 EX=11
TCL=$600K+ / AAOA= 2.9 yrs / Oldest account = 10.9 yrs
Message 7 of 9
Established Contributor

Re: minimum payment *to start* (followed by another)?

Thanks, all.

My 'extra' payment approach is in keeping with Gmood1's recommendation, less the autopay.  I'm autopay averse, probably for no good reason. (Well, actually, the reason is that should there ever not be enough for the payment, that'd be a failed payment, which would be really bad.. When I make a payment, I want to be confident that it'll clear.)

2019 Goal: 800+ across the board (my sole 30-day late drops in Q1 2019)
2018 Goals: garden, 750+ across the board, garden, put away 3 months' savings, garden



Experian is the canary in my coal mine.

EQ7637 INQ (4 CC, 2 mort, 1 auto)
EX7388 INQ (4 CC, 2 HELoan, 2 mort)
TU8056 INQ (4 CC, 2 mort)
6/24 < 5% AAoA TBD | AoYA 0m | AoOA 19y 2m
Take the myFICO Fitness Challenge [ Last INQ 11-May-2018 ]
Gardening 'til Q1 2019
Message 8 of 9
Highlighted
Senior Contributor

Re: minimum payment *to start* (followed by another)?

Canuck you're big money!  You don't worry about no stinkin payments. lol

Those auto payments will keep you honest and make you watch your budget more closely.

Cancelling the full payment option and changing it to minimum payments takes only a few minutes.

FICO 8 Scores EQ=776 TU=783 EX=777 (INQ) EQ=12 TU=11 EX=11
TCL=$600K+ / AAOA= 2.9 yrs / Oldest account = 10.9 yrs
Message 9 of 9