Will there be effect on the Credit score for paying minimum amount on 0% Card.

Hello Experts,

I have the Capital one Cash back credit and have around 2500 balance on the same. All this balance is made up of purchases and none from balance transfers and cash withdrawels.
The card says that it has 0% interest on the purchases till Apr 2012. I paid full balance till last month by DD but now planning to pay the minimum and use the funds somewhere else for 6 months. I will ensure that funds are available by march 2012. If I only pay the minimum payment will there be impact on my credit score and will it affect future credits and borrowing?

Can you please shade some light on this?

Thanks

Replies

  • TixyTixy Forumite
    31.5K Posts
    Paying minimum payments does cause a minimum payment flag on your credit file - this only shows on the detailed section of your report and so could only be seen by other lenders who subscribe to the providing the additional information that goes onto a detailed credit account entry.
    Ideally pay just a couple of quid more than minimum each month, which stops this flag from appearing.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • manyaonislandmanyaonisland Forumite
    61 Posts
    Tenth Anniversary 10 Posts Combo Breaker
    Forumite
    Tixy wrote: »
    Paying minimum payments does cause a minimum payment flag on your credit file - this only shows on the detailed section of your report and so could only be seen by other lenders who subscribe to the providing the additional information that goes onto a detailed credit account entry.
    Ideally pay just a couple of quid more than minimum each month, which stops this flag from appearing.

    Thank you.. the tip about paying couple more than minimum is really helpful. So in which case i should cancel my direct debit by calling them and then arrange the payments every month. correct?
  • TixyTixy Forumite
    31.5K Posts
    Depends if you are the sort of person who will still remember to make the payment on time! Personally I still have a DD set to a minimum payment so there is no risk of me accidentally missing a payment. Then I tend to make an extra payment manually online of £3 or £4 or so.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • manyaonislandmanyaonisland Forumite
    61 Posts
    Tenth Anniversary 10 Posts Combo Breaker
    Forumite
    Tixy wrote: »
    Depends if you are the sort of person who will still remember to make the payment on time! Personally I still have a DD set to a minimum payment so there is no risk of me accidentally missing a payment. Then I tend to make an extra payment manually online of £3 or £4 or so.

    Ahh thank you.. you are a Star!
  • pqrdefpqrdef Forumite
    4.6K Posts
    If you pay much more than the minimum on a 0% deal, it impacts your IQ score.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • JDC14JDC14 Forumite
    436 Posts
    Could you not set up 2 DD's?

    1) For the minimum
    2) For say £5.

    Then you'll always pay £5 above the minimum, just keep yourself in check when using the credit card to make sure the spending wont exceed what you have.
  • JDC14 wrote: »
    Could you not set up 2 DD's?

    1) For the minimum
    2) For say £5.

    Then you'll always pay £5 above the minimum, just keep yourself in check when using the credit card to make sure the spending wont exceed what you have.
    I think you would probably have to set up a DD for the minimum and a Standing Order for the extra amount.
    Are you for real? - Glass Half Empty??
    :coffee:
  • pqrdefpqrdef Forumite
    4.6K Posts
    Just so long as they don't notice the SO payment and take £5 less on the DD.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • manyaonislandmanyaonisland Forumite
    61 Posts
    Tenth Anniversary 10 Posts Combo Breaker
    Forumite
    pqrdef wrote: »
    If you pay much more than the minimum on a 0% deal, it impacts your IQ score.


    I am sorry but what is IQ score?
  • TixyTixy Forumite
    31.5K Posts
    I am sorry but what is IQ score?

    They just mean its not very smart to pay off 0% debt quickly if you could keep the money in a savings account and earn interest instead. :)
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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