"minimum payment markers"

capitaine

I read on another thread that making minimum payments can be detrimental to your credit rating. I've tried to google the answer but the only thing that seems to come up is other threads from this forum. Does anyone have definitive proof that this is true?

opinions4u

It's up to lenders to choose how to interpret them. Some will see it as telling a story about an individual who can't afford to increase their outgoings.

Remove the risk of a negative interpretation by paying £1 a month extra.

DavidDebt

How a lender reacts to minimum payment markers will vary from lender to lender. Some will see it positively (in debt longer more chance to make money), some will see it negatively (is only just meeting current credit payment commitment especially combined with other factors such as high credit to salary ratio or high utilisation).

There's no way to find out for sure as they'd never reveal any part of their decision process.

pqrdef

They're also supposed to indicate whether you're on a 0% offer. But last time I looked I had a couple who were giving me the minimum payment flag and not setting the 0% offer flag. I decided not to worry about it.

Hominu

I had an AA card which was increasing in credit every month and only having £25 paid off each month. After 10 months I had £3000 on the card. Didn't seem to have a 0% marker on my credit report, but it doesn't seem to have affected my credit either, but the month after paying the card in full I got a letter from the AA about an automatic credit increase, 2 "guaranteed" loans through the door and a letter from Nationwide saying I'd been guaranteed a Select card. Coincidence?