Credit Reports and Minimum Payments

theesel1994

I just had a look at my latest Credit Report and noticed for my credit card they have each month a figure for credit limit, balance and payment amount. There is also an indicator for the minimum payment.

For one of my credit cards I pay the minimum amount by direct debit each month. For the other one I pay it manually but usually pay more than the minimum amount.

If I was to set up a standing order and pay a set amount every week would this change the payment indicator (because the total for month is more than the minimum payment) or does the credit report look at the individual payments on their own and this would be less than the minimum payment and would make matters worse?

Oddly, the credit card I pay manually is not included on this credit report - is this because it was started so long ago - 1987 ?

[Deleted User]

As long as you pay more than the minimum in a month, it doesn't matter how you do it and it will look better on your report.

Be aware of timings though if your card is one of those that will reduce a min pay DD if an earlier payment is made, thus potetnially still equating a minimum payment.

theesel1994

Thanks.

I'll test it out for a few months to see if it reduces minimum payment. I have made additional payments before and it hasn't reduced MP - but as you say, that could be down to the timing of the payment.

[Deleted User]

Which card is it?

theesel1994

The one on the credit report is MBNA, the other one is RBS Mastercard.

The RBS has two methods for minimum payments based on when the account was opened. I'd prefer if I was on the newer method which means more of a minimum payment is requested. I know I can increase the amounts paid myself - I just wish the decision was taken out my hands.

bengal-stripe

theesel1994 wrote: »

I have made additional payments before and it hasn't reduced MP - but as you say, that could be down to the timing of the payment.

theesel1994 wrote: »

The one on the credit report is MBNA, the other one is RBS Mastercard.

I don't know about RBS, but MBNA will not adjust a DD (minimum or full amount):

"Please remember, your regular Direct Debit payment will always be taken, regardless of any additional payments you choose to make."