Do minimum payments on a 0% card look bad?

shortcrust

I've just got my first card with a 0% for 12 months offer. I usually clear my balances in full and am wondering if paying the minimum payment for the 0% period look will look bad to other lenders. Can they somehow see that you're taking advantage of an offer? Would it look better to pay a larger amount? Thanks.

EDIT: Also, whilst I'm asking, with this one I now have four cards - an aqua, an aqua reward, a capital one, and the new nationwide one (my first this isn't sub prime). That's not too many is it?

exel1966

Until recently it was thought that minimum payments were of no concern to lenders. Then some financial institutions started to record this info via the CRA's so it can now be seen on your report in full. What impact it has is as yet uncertain, but let's face it they wouldn't haven't asked for this info if it was of no use to them.
To mitigate against having the minimum payment marker highlighted it is wise to make either just above the minimum or if you have a minimum DD set up make a small additional manual payment of £1 each statement period.

Too many cards will depend on your OWN personal circumstances. Some people can easily operate 5-10 cards simultaneously with good limits if their credit record is very good.

BugsyBrowne

At the end of the day minimuim payments are going to look hundred times better then a late or missed payment but I would personally always pay £5 over your minimum payment if you don't pay in full.

[Deleted User]

If I were a lender, provided the applicant had a decent income, compared to their level of debt, I'd see minimum payments as a good thing, as it would indicate the applicant was financially savy.

chanz4

even 1p over, stops the flag

exel1966

Bedsit_Bob wrote: »

If I were a lender, provided the applicant had a decent income, compared to their level of debt, I'd see minimum payments as a good thing, as it would indicate the applicant was financially savy.

To you, yes, but not to those that matter because it also shows that you're a rate tart and using the card for one purpose (if at 0%) and that purpose is not really what a prospective lender wants to see.

CRISPIANNE3

Never stopped me obtaining further credit.

Gromitt

I've only ever made the minimum payment on 0% offers.

I notice it does say on my report whether or not a card is on a promotional offer.

So I'd therefore say:
Minimum payment when paying interest = bad (ie, why would you pay interest if you could afford to pay off the statement in full?)
Minimum payment when not paying interest: No effect on credit.

[Deleted User]

exel1966 wrote: »

and that purpose is not really what a prospective lender wants to see.

A prospective lender doesn't want to someone, who us careful with money :huh:

exel1966

Bedsit_Bob wrote: »

A prospective lender doesn't want to someone, who us careful with money :huh:

....but they do....they want to see one careful enough to repay their debts...in full.

Paying minimums only has personally never affected me in obtaining credit and that includes years of stoozing multiple cards, but since it's now being recorded i believe it's wise to pay that little extra. They're certainly not recording minimums to fill space

I'd say the far majority of card holders out there pay minimums because their financial situation at the time gives them little alternative. It certainly won't have anything to do with financially being savvy. This is where the savvy lose out because we're put into the same basket.

The same applies with having multiple searches recorded for opening multiple current accounts to use as savings accounts. Those searches are detrimental, but it enables the savvy to get the most out of their savings.

Ravenshade

Op: Paying the minimum for a 0% offer is absolutely fine. If they didn't want you to use it, they wouldn't let you have it. Just make sure you do pay the minimum and make sure to pay it consistently.

Clear before the end of the 0% rate and you will be fine, they'll be happy they have their money back...of course, they'd be happier if you carried on paying 'minimum' payments, but that's tough cookie for them. The perfect debter, is the one who always pays back at the minimum rate. Therefore locking them into debt where they can charge the most.

If you miss a payment you will without a doubt lose the 0% rate and you do have to make sure you clear it at the end (otherwise there's little point of even bothering).

Ps. The credit card holder who always pays off in full at the end of each month is a nightmare. You can't make any profit out of these guys. >=D