Minimum Payments

Anonymous · ‎09-10-2008

Hello,

FICO Score 750 - Always looking to improve. Have several cards with balance transfers. Always pay on time but typically pay minimum. Question: If minimum is 2% or $200.00, what is impact of paying $201.00 vs. simply paying $200.00 miminum. I understand there may be a benefit to paying "in excess of minimum" on a monthly basis but how much $ or % over minimum would be required to make an impact? Any thoughts are appreciated.

Andy

Anonymous · ‎09-10-2008

It's not about how much you pay, it's more about how much you not pay. The ratio of your balance to CL is what counts.

Anonymous · ‎09-10-2008

When it comes to revolving debts.......FICO likes to see less than half your accounts reporting balances, individual util below 9% and total util between 1-9%.

Anonymous · ‎09-10-2008

I would pay a little more than minimum for other reasons even if just $1 more.

I'd recommend double minimum to stay under the radar of the banks during these stressful times. Not sure about FICO but some lenders are targeting people that pay only the minimum.

Message Edited by ilovepizza on 09-10-2008 08:51 PM