Comments on: Credit card, pay in full vs. minimum payment? http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm Sat, 19 May 2012 13:03:56 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: StephenWeinstein http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm/comment-page-1#comment-1321 StephenWeinstein Mon, 12 Oct 2009 14:28:46 +0000 http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm#comment-1321 Q1. "So does that mean I'm required to make the full payment to keep my credit score up?" A. No. You are required to pay only the minimum. If you pay at least the minimum, but less than the full payment, you will be charged interest, but will not hurt your credit score. Q2. I can just transfer money from my Bank of America checking account straight into the credit card to pay my bills right? A. Only if you have enough money in your checking account. Do not overdraft / overdraw your checking account. BofA will charge you a lot if you do. Q1. "So does that mean I’m required to make the full payment to keep my credit score up?"
A. No. You are required to pay only the minimum. If you pay at least the minimum, but less than the full payment, you will be charged interest, but will not hurt your credit score.

Q2. I can just transfer money from my Bank of America checking account straight into the credit card to pay my bills right?
A. Only if you have enough money in your checking account. Do not overdraft / overdraw your checking account. BofA will charge you a lot if you do.

]]> By: liv4livie http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm/comment-page-1#comment-1322 liv4livie Mon, 12 Oct 2009 14:28:46 +0000 http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm#comment-1322 yes pay more than the minimum if you can. it will help you with your credit score too. a good rule of thumb is your credit score will improve if you only have 25% of your total credit limit charged ( i.e. credit limit $700, then only charge $175) and then pay it off within like 3-4 months. this will also help you stay out off debt too. so if you can keep paying on that bill until you have reached that 25% goal and then you can probably start paying the minimum. yes pay more than the minimum if you can. it will help you with your credit score too. a good rule of thumb is your credit score will improve if you only have 25% of your total credit limit charged ( i.e. credit limit $700, then only charge $175) and then pay it off within like 3-4 months. this will also help you stay out off debt too. so if you can keep paying on that bill until you have reached that 25% goal and then you can probably start paying the minimum.

]]> By: p_crothall http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm/comment-page-1#comment-1323 p_crothall Mon, 12 Oct 2009 14:28:46 +0000 http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm#comment-1323 No. If you want to pay just the minimum, then do so but be prepared to pay interest next month. If you pay off the full amount, you will have no interest. If you are trying to maintain an established credit rating, then pay it all off. You pay one or the other not both. No. If you want to pay just the minimum, then do so but be prepared to pay interest next month. If you pay off the full amount, you will have no interest. If you are trying to maintain an established credit rating, then pay it all off. You pay one or the other not both.

]]> By: bodaggin http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm/comment-page-1#comment-1324 bodaggin Mon, 12 Oct 2009 14:28:46 +0000 http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm#comment-1324 Well, a minimum payment is the minimum amount that you must pay on the balance. If you do not pay this by the due date they it goes against your credit as a missed payment. The reason they are both at the same date is because that is your due date for payment, and you can either opt to pay any amount ranging from the minimum payment to the full amount. Keep in mind this is where the interest comes in. If you pay anything less than the full balance, the amount left in the balance will be charged the annual interest rate (usually 16-20%, so divide it by 12 and that will be the monthly amount you will pay). Make sure to make your minimum payments at the very least, that way your credit rating stays in tip top shape, but I would very strongly recommend to pay off credit card balances in full every month, as they can get out of hand! Well, a minimum payment is the minimum amount that you must pay on the balance. If you do not pay this by the due date they it goes against your credit as a missed payment.

The reason they are both at the same date is because that is your due date for payment, and you can either opt to pay any amount ranging from the minimum payment to the full amount. Keep in mind this is where the interest comes in. If you pay anything less than the full balance, the amount left in the balance will be charged the annual interest rate (usually 16-20%, so divide it by 12 and that will be the monthly amount you will pay).

Make sure to make your minimum payments at the very least, that way your credit rating stays in tip top shape, but I would very strongly recommend to pay off credit card balances in full every month, as they can get out of hand!

]]> By: Chin chin http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm/comment-page-1#comment-1325 Chin chin Mon, 12 Oct 2009 14:28:46 +0000 http://smallbusinessmerchantaccounts.org/credit-card-pay-in-full-vs-minimum-payment.htm#comment-1325 You can either pay the minimum payment or the full payment. However, just paying the minimum will attract interest. Unlike, if you pay the full amount, there won't be any interest charges compounding month after month. Yes, you just have to pay Bank of America not the individual merchants and maybe, using your checking account with Bank of America to pay the credit card bill will do. You can either pay the minimum payment or the full payment. However, just paying the minimum will attract interest. Unlike, if you pay the full amount, there won’t be any interest charges compounding month after month. Yes, you just have to pay Bank of America not the individual merchants and maybe, using your checking account with Bank of America to pay the credit card bill will do.

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