Full vs. Partial Payment on Credit Card?

For just about anything you want to get off your chest about credit cards.
5 posts
User avatar
jumbo
Centurion Member
Centurion Member
 
Posts: 363
Joined: Wed Sep 14, 2011 3:17 am
Location: IA

Full vs. Partial Payment on Credit Card?

Postby jumbo » Wed Oct 26, 2011 11:24 pm

Just curious to know:

First of all, until now, I have always paid my CC balance in full, so my credit report does not show any late payment.

Now, suppose the APR is ZERO and I use the credit card to max and I just do the partial payment (more than minimum) every month, will my credit report still say that I have been paying in time or they will say, like partial payment or something. I meant to ask, will the partial payment hurt my credit history in any way...! :confused:
Thanks
BofA Cash Rewards | CapitalOne QuickSilver | Discover More
Gold Delta AMEX | Citi DoubleCash | Citi Simplicity
Chase Freedom | Kohls Charge Card


sticf
Centurion Member
Centurion Member
 
Posts: 132
Joined: Mon Jul 18, 2011 10:08 pm
Location: Houston

Postby sticf » Thu Oct 27, 2011 7:09 am

It will show you are paying on time. It will not indicate a partial payment directly in your 2 year credit history (chart that usually appears at the bottom of the account on the credit report).

The card company will usually report a balance. Because they report a balance and a maximum credit limit, your score may drop due to revolving credit utilization. Here is an extreme example. If you have a $5000 credit limit on your only card and you charge $4100 on it in one month. You then pay $100 leaving you a $4000 balance. That balance is reported. Your revolving credit utilization is 80%. If you were to pay it off before the card company reports you would have 0% utilization. Lower utilization is usually better.

If you are not planning on applying for credit in the next few months then it is really a non-starter. Credit Utilization is not tracked it is a snapshot at the time someone pulls the report.

Hope it helps.

User avatar
jumbo
Centurion Member
Centurion Member
 
Posts: 363
Joined: Wed Sep 14, 2011 3:17 am
Location: IA

Postby jumbo » Thu Oct 27, 2011 2:17 pm

thanks @sticf for the info... right now I am just planning to use the 0% APR to pay my college bills, and pay in full before the 0% period ends (which is 14 months from now). And I am not planning to apply for any credit for at least 10/12 months. So, I guess I'll pay my college with the CC and hopefully pay in full before the 0% APR period ends. ;)
BofA Cash Rewards | CapitalOne QuickSilver | Discover More
Gold Delta AMEX | Citi DoubleCash | Citi Simplicity
Chase Freedom | Kohls Charge Card

naomibatac
Platinum Member
Platinum Member
 
Posts: 57
Joined: Wed Sep 07, 2011 10:46 pm
Location: Philippines

Postby naomibatac » Thu Oct 27, 2011 9:48 pm

I believe what is important is that you pay on time and never miss a payment. It is also better to pay partial and not just the minimum, which will cause your balance to bloat with interests and finance charges.
[size=60]I don't have any relationship to the credit cards or companies discussed here. I am solely a regular member of this forum with no direct financial rewards from this site. My opinions are solely mine.[/size]

A mom of 3 and currently living life, and working for credit card helpline, a company dedicated to helping people get out of credit card debt.

User avatar
jumbo
Centurion Member
Centurion Member
 
Posts: 363
Joined: Wed Sep 14, 2011 3:17 am
Location: IA

Postby jumbo » Thu Oct 27, 2011 11:19 pm

@naomibatac: you are absolutely correct on this. Not planning to miss a payment, and planning to pay at least 4/5 times than the minimum payment to pay the CC. 0% APR for a while, so interest is not a concern now. :P
BofA Cash Rewards | CapitalOne QuickSilver | Discover More
Gold Delta AMEX | Citi DoubleCash | Citi Simplicity
Chase Freedom | Kohls Charge Card



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests