If I pay the minimum payment will it be the same as paying in full ??

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scalar009
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If I pay the minimum payment will it be the same as paying in full ??

Postby scalar009 » Mon Sep 08, 2014 12:12 am

So i got an credit card with 0% apr for 15 months


If i only use 15% of my credit limit will my score be any different weather i pay in full or just pay minimum?


takeshi
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Postby takeshi » Mon Sep 08, 2014 12:33 pm

If you pay in full you won't be using 15% (at least, not the next time it reports).

However, payment amount doesn't really factor into FICO scoring. See also:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Bama87
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Postby Bama87 » Mon Sep 08, 2014 3:27 pm

As long as you meet the min amount owed on that statement, then it will not affect your score negatively.

You will still be paying on time per say, just with the min payment, instead of the whole payment.

scalar009
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Postby scalar009 » Mon Sep 08, 2014 5:06 pm

takeshi wrote:If you pay in full you won't be using 15% (at least, not the next time it reports).

However, payment amount doesn't really factor into FICO scoring. See also:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx




so If I use 15% of my credit and let it stay there until the closing date and the bill comes, and then pay it in full, will my card show 0% utilization?

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PlyrStar93
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Postby PlyrStar93 » Mon Sep 08, 2014 6:42 pm

scalar009 wrote:so If I use 15% of my credit and let it stay there until the closing date and the bill comes, and then pay it in full, will my card show 0% utilization?

Not right away, but after paying in full if you don't use the card and no fees/interests are charged, then when the next statement comes it's 0%.
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Postby MemberSince99 » Mon Sep 08, 2014 8:23 pm

scalar009 wrote:so If I use 15% of my credit and let it stay there until the closing date and the bill comes, and then pay it in full, will my card show 0% utilization?



If you let it stay there until the closing date then that is what is reported and that IS your utilization for that card - whatever balance it has on the closing date. So no, having 15% on your closing date would result in 15% utilization. It doesn't matter if you have 0% for 6 months or a year for the APR, you still have utilization that's another issue altogether.

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sicasun
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Postby sicasun » Tue Sep 09, 2014 10:11 am

Whether you pay in full or just pay minimum might only really affect your score if you don't touch the credit card at all after you hit 15%, your first amount gets reported, you pay the minimum, and wait for another period without using the card, and then the new amount less the minimum you paid will get reported. This will only work while you have 0% APR, otherwise you'll incur interest. And tbh, I think the usual minimum payment amounts are so small (like $25) that they won't really make a difference on your score anyway...

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