Is paying the minimum on your credit card bad for your credit?
I don’t actually do this, I was just wondering. If you pay it in full is that any better for your credit score than paying about the minimum?
4 Comments
Is paying the minimum on your credit card bad for your credit?
I don’t actually do this, I was just wondering. If you pay it in full is that any better for your credit score than paying about the minimum?
4 Comments
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No you just end up paying more because of the interest rate.
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It’s bad for your credit when your balance is high compared to your available credit, which will eventuall happen if you only make minimum payments. For example, if your credit limit is $5,000 and a company pulls up a credit report on you, it’s bad for your credit score if your balance is $4,000. The general rule is to use no more than 30% of your available credit. Use different cards if you have to.
That said, it’s never a good idea to pay too much on finance charges. I almost always pay off my cards every month.
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paying in full saves your finance / service charge.
I assume credit score depends on how much credit you take & not on how much part payment you make. -
Yes. It is also bad for your credit to leave your card revolving at the limit.
No you just end up paying more because of the interest rate.
It’s bad for your credit when your balance is high compared to your available credit, which will eventuall happen if you only make minimum payments. For example, if your credit limit is $5,000 and a company pulls up a credit report on you, it’s bad for your credit score if your balance is $4,000. The general rule is to use no more than 30% of your available credit. Use different cards if you have to.
That said, it’s never a good idea to pay too much on finance charges. I almost always pay off my cards every month.
paying in full saves your finance / service charge.
I assume credit score depends on how much credit you take & not on how much part payment you make.
Yes. It is also bad for your credit to leave your card revolving at the limit.