Paying More Than The Minimum

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Paying More Than The Minimum

How many of you on this forum pay more than minimum on your credit cards? Do you think doing this builds a good reputation with the credit card company you are with?

I'm not sure if it builds a better reputation than when we just pay the minimum on time but it surely helps us get out of debt faster. My husband tries to pay as much as he can in order to get debt free faster. I on the other hand have gotten rid of my credit cards already and I am so relieved that they are gone.

I try to pay a few dollars more than the minimum. Helps battle the interest a little bit. Credit companies don't care how much you are paying them back, just as long as you are paying. I'm sure they'd prefer you pay the minimum for the rest of your life though.

When I still had a credit card, paying only the minimum caused some rather nasty problems with the balance never going down and huge amounts going toward the interest while very little was applied to what I actually owed.

Considering the interest rates are so high, I'd think that anything extra you can pay on the card above the minimum would be a very good choice.

I can understand where you are coming from by getting rid of your credit cards. I use to have credit cards, but I seem to have no need for them anymore.

I don't know if it makes my credit card like me any better than they do already, (I have threatened to sue them so I'm sure I'm not their favorite), but it makes me feel better. Sometimes I'm able to pay a significantly larger amount than the minimum and other times I just pay about ten dollars more. Everything counts though, and it will help you in the long run if you're able to do it.

Its pretty simple math when it comes down to it. You borrow money. You get charged an interest rate for borrowing it. The faster you pay it back. The faster that it will be gone. Then the interest rate will be gone after its fully paid off and you don't owe anything. The only thing that will hurt your reputation is not paying your bills. That's just bad times for everyone. You have to pay what you owe.

That's all there is to it really.

I pay more than the required minimum especially when it comes to credit cards. Firstly because, the more you pay into your debt the quicker the interest will go down, also this good habit does not only put you in good standing with your current financial institution but also with the others that are linked with it. Look at it this way, If financial institutions realise that you can pay off your debt quicker, they will know that you are a lower a risk client and in that way your interest will be lower and you will also be able to ask for the exact amount you require without the risk of being put in a situation where you have to pay a higher interest.

Well, I have to be honest. I have always paid my credit cards off in full. Always. I never only pay the minimum. I'm not sure that it has negatively affected my credit score. The last time I was a approved for a mortgage, I was in the high 700s.

I should probably thank all of you for only paying the minimum though, because I guess that's how the companies make all their money. I wonder, however, if you thought about it when shopping that the price AFTER interest of each item makes many items not a good deal, would you still spend the way you spend?

I mean, this is kind of a classic example of why and how most Americans (and others I'm sure) are in debt.

When you only pay the minimum on a credit card it sends the message that you are overextended. You pay interest on the balance so you want to pay the card off as quickly as possible. If you stop charging and only pay the minimum balance it can take over 20 years to pay the card off.

Correct. If you only pay the minimum, it will take you a long amount of time to pay the overall bil off. I also think that paying more the minimum is good mesasage to send to the card company in terms of building a repuatation as someone who is willing to pay efficiently.

I think now that credit card companies have to put how long you will be paying and how much you will be paying makes people realize how important it is to pay more than the minimum payment do. In the long run it can save you a lot of money.

It doesn't necessarily gain you any benefits. It just simply keeps your account in good standing. However they can still lower your credit limit for other reasons if they choose to. I think the only thing that should remain the same is your interest rates unless you make a late payment or miss a payment.

I had a card from Bank Of America for nearly 6 years, and always kept it at a low balance and always paid much more than the minimum - then out of the blue they lowered my credit limit on it.

Paying More Than The Minimum | ConsumerFu


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