Minimum Payment Marker

the_long_and_winding_road
the_long_and_winding_road Posts: 123 Forumite
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in Debt-free wannabe
Hi, can anyone confirm how much you need to pay above the monthly minimum amount on a credit/store card to ensure that a minimum amount payment flag isn't added on your credit file history?
I'm Snowballing at the moment to clear debt and it suggests paying minimums on all other cards and pay money off the debt you're concentrating on. I just don't want to have the minimum payment flag showing any more if it means I only need to pay an additional £1 more each month on the other debts.
I always believed it to be £1 above the minimum but I don't actually know that's fact.
Does anyone know for certain?
Thanks
Pay all your debt by Xmas 2023 - #39 £2,570.09 / £12,000.00 (21.4%)
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Comments

  • ParaJon
    ParaJon Posts: 29 Forumite
    Hi there,

    First of all congratulations on clearing away your card debt.

    Whilst i was employed at one of the UK's largest banks. When i would authorise loans & credit cards we would always perform credit checks and affordability assessments.

    Generally speaking the minimum payment flag isn't a massive negative that you should be overly concerned about as it also shows that your current debt is sustainable.

    If you are looking to improve your credit rating consolodating your cards into fewer cards will help, for example.

    If you have £10,000 limit and a £8000 balance on this card. You have £2000 spare. if you have another card that has £1500 balance.

    If you do by any chance get a 0% offer to move £1500 onto the £10,000 card it will show on your credit file that you have less lending facilities in use which will improve your credit file.

    If you do wish to avoid the minimum payment flag i believe you need to pay an additional % above the minimum payment % to avoid this.

    Hope this helps.
    Ex Bank Manager. Emergency Fund: £400/£2000
  • the_long_and_winding_road
    the_long_and_winding_road Posts: 123 Forumite
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    Thanks for replying ParaJon.
    I'm not sure what you mean by your last sentence? So say if my minimum payment was £100 then what % on top of that should I pay to avoid the minimum payment flag? Do you mean the additional % should be the same % used to calculate part of the minimum payment at the outset?
    Apologies if I'm coming across dim!
    Pay all your debt by Xmas 2023 - #39 £2,570.09 / £12,000.00 (21.4%)
  • ParaJon
    ParaJon Posts: 29 Forumite
    No worries, apologies it was unclear, I believe it's %1 plus or more,

    So if your minimum payment is £100 pay £110
    Ex Bank Manager. Emergency Fund: £400/£2000
  • sourcrates
    sourcrates Posts: 28,833 Ambassador
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    edited 14 February 2016 at 1:21PM
    Can you show me where on a credit file there is an option for a minimum payment marker ?
    It's either marked green if you pay on time, or red if you don't.
    The red numbers then dictate how many months in arrears you may be.


    I have never seen them, myself.

    A creditor may mark it on there own systems, but not on your credit file, as far as I know.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • the_long_and_winding_road
    the_long_and_winding_road Posts: 123 Forumite
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    I've seen minimum payments highlighted with Experian, albeit approximately two years ago when I had my last £2 statutory file from them. A capital letter 'M' by the monthly payment 'dot'. Don't think it was showing for all creditors but it was for a couple or so. If it's something that's been done away with now then good and well. I use Noddle & Clear Score just to keep an eye on things and make sure accounts are reported accurately/closed as they should be.
    I'll carry on Snowballing as was!
    Pay all your debt by Xmas 2023 - #39 £2,570.09 / £12,000.00 (21.4%)
  • the_long_and_winding_road
    the_long_and_winding_road Posts: 123 Forumite
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    Thanks ParaJon.
    Pay all your debt by Xmas 2023 - #39 £2,570.09 / £12,000.00 (21.4%)
  • the_long_and_winding_road
    the_long_and_winding_road Posts: 123 Forumite
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    Payment code - An ’M‘ shows that the amount you paid in response to your last statement was equal to the minimum payment shown on that statement. If you paid more or less than the minimum payment, no letter will be shown.

    The minimum payment information is supplied to Experian by some creditors.
    Pay all your debt by Xmas 2023 - #39 £2,570.09 / £12,000.00 (21.4%)
  • Lemonsqueezer78
    Lemonsqueezer78 Posts: 307 Forumite
    the_long_and_winding_road wrote: »
    Payment code - An ’M‘ shows that the amount you paid in response to your last statement was equal to the minimum payment shown on that statement. If you paid more or less than the minimum payment, no letter will be shown.

    The minimum payment information is supplied to Experian by some creditors.

    Which implies you actually only need to go over by a single penny to stop this....
  • ParaJon
    ParaJon Posts: 29 Forumite
    the_long_and_winding_road wrote: »
    Payment code - An ’M‘ shows that the amount you paid in response to your last statement was equal to the minimum payment shown on that statement. If you paid more or less than the minimum payment, no letter will be shown.

    The minimum payment information is supplied to Experian by some creditors.


    Again although your credit file on Experian has this information, Lenders generally dont look at how you a repaying a credit card. They look for amount outstanding > salary or amount outstanding > credit limit.

    Whilst i worked for one of the UK's largest banks, on loans and credit card applications, Minimum payment concerns were never really an issue unless someone was clearly over committed. Because if you have a 0% for example, it's perfectly reasonable why someone would only pay the minimum in the short term.
    Ex Bank Manager. Emergency Fund: £400/£2000
  • bearcat16
    bearcat16 Posts: 339 Forumite
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    An idea that someone on here shared;

    Set up a direct debit for the minimum payments, then also a standing order for £1.
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