April asked:
which would be better for my credit score? and if i do pay only the minimum on the bill sometimes will that effect my credit? and how bad?
which would be better for my credit score? and if i do pay only the minimum on the bill sometimes will that effect my credit? and how bad?
#1 by Eric - December 30th, 2009 at 21:15
paying th min will hurt you. not only will it cost you more, but lenders will think that the minimum is all you can pay. pay it off, save the interest.
#2 by ∞infiniti∞ - December 31st, 2009 at 19:34
Minimum payment is all you are required to pay.
However, carrying large balances that are more than 30% of your credit line will hurt your credit score.
#3 by Dan B - January 4th, 2010 at 02:43
If you can pay if off in full, you’ll be dollars ahead by saving interest charges. Paying the minimum signals that you have money troubles and the CC company will use that as an excuse to jack up your interest rate. If you can’t pay it off in full, pay as much extra as you can afford.
#4 by mr_fartson - January 5th, 2010 at 13:16
You only have to pay the minimum.
Others, however, have said you get a lower credit score with a high balance. You also pay a usurious rate of interest.
Unless you are in a financial emergency, pay off your credit cards each month and live within a workable budget. It will help keep you out of financial trouble
#5 by Sameer - January 7th, 2010 at 18:16
It is better to pay the full credit card bill amount. If you pay only the minimum, then the interest rate will be very high for all the purchases you made for that bill and the purchases till you clear the outstanding amount.
You will see a very heavy bill coming to you in your next statement. So better pay the full amount. All the best.
#6 by sarasoreo - January 10th, 2010 at 05:31
You don’t have to pay the full balance, the minimum is fine. However, if you keep using that card, the balance will never be paid off if you just pay the minimum. My suggestion to you if your trying to improve your credit score: Use the card once a month, even if it’s just a couple of bucks, and then pay that card off in full each month.
Here are a few more tips to improve your score:
1. Never let the balance of your credit cards exceed 50% of you maximum limit. This will damage your score. If you keep it at 30% or below, this will have a positive impact on your score.
2. Keep the account with the most history open (longest account open). The length of the account will also improve your score.
3. Try not to let people look at your score. Having too many inquires also damages your score. This can be a huge impact, most of the time your score is knocked down by up to 20 points for 1 inquiry!
4. Pay your bills on time. Delinquent payments and collections can have a major negative impact on your credit score.
5. It’s okay to request and check your own credit report.
This won’t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers. This is in fact a good idea to ensure there are no discrepancies.
#7 by emce - January 12th, 2010 at 14:22
If you make full payment, the interest and Service tax charges could be avoided.
If you make part payment, you will attract financial charges and taxes, which are as high as 36% per annum.
The choice is yours.
If you do not have funds to make full payment, then, you have no choice left, than to make part payment.
#8 by bdancer222 - January 15th, 2010 at 09:04
As long as you make at least the minimum payment by the due date, the credit card company will report your payment as on time. Making minimum payments or paying in full are reported exactly the same way and neither will do anything extra to help or hurt your score.
However, paying the account in full will save you interest. The best way to use your card to build your score is to use the card every month for small purchases and pay in full. This will build a good payment history, avoid interest, and keep you out of debt.