£1 only monthly payment on credit card - does it affect credit rating?

littlemissb

Hi there,

Can anyone tell me whether paying only £1 per month to your credit card company and asking for them to stop charging interest affects your credit rating?

I have seen a few template letters to send to companies to request this so it's obviously an established option.

If you can tell me where I can read up on this I'd be grateful!

Thanks ever so!

bsms1147

No it doesn't harm your rating, because by the time you get to a point where you are able to pay just £1 a month, your credit rating will already have been trashed.

Thrugelmir

littlemissb wrote: »

If you can tell me where I can read up on this I'd be grateful!

Thanks ever so!

What's your concern?

littlemissb

My credit rating isn't THAT terrible but I can only make minimum repayments until a loan is repaid in 18 months time (£340/month). So wondering if it's worth requesting this to make a dent in the debt,

tinkerbell28

Yes, it will trash it, seeing the accounts defaulted and remaining on your file for 6 years from the date of default.

ValHaller

littlemissb wrote: »

My credit rating isn't THAT terrible but I can only make minimum repayments until a loan is repaid in 18 months time (£340/month). So wondering if it's worth requesting this to make a dent in the debt,

Make minimum payments then. £1/month is token payments and is what you do when things are bad enough that trashing your credit record is not such a big deal.

By the way, don't be concerned about your so-called 'credit-rating' - I hope you are not paying to get this. Only be concerned to keep the facts on your credit record accurate and to manage your credit well.