Pay credit card off now or keep paying minimum?

Tazz360

Hi people.

After 14 months of paying my £3,500 credit card debt, I am now down to £390. I can pay this in one go next week, but I have recently seen my credit report which is 'Fair'.

Would it make any difference whatsoever if I paid it all off next week or just kept paying the minimum payment each month?

Would either way improve or worsen my credit rating?

bigadaj

Pay it off now.

Then use the card for regular shopping, pay off in full every month and your file will improve, though it's the regular payment and clearing the cards that's important, ignore the experian or equifax score.

Tazz360

bigadaj wrote: »

Pay it off now.

Then use the card for regular shopping, pay off in full every month and your file will improve, though it's the regular payment and clearing the cards that's important, ignore the experian or equifax score.

Thanks for the advice.
So Experian and Equifax aren't really that accurate?

Millie_Millsters

Don't forget, if you pay it all off, that you'll still having trailing interest to pay the following month before your account is clear.

pacontracting

Equally there are rumours about that you should never pay the minimum anyway. The rumours say you should pay a few quid over.

Does anyone know of this. Is it hearsay?

[Deleted User]

pacontracting wrote: »

. Is it hearsay?

No. There is a min payment marker that lenders can see. It's generally seen as an indication of higher risk.

wannabe_credit_free

pacontracting wrote: »

Equally there are rumours about that you should never pay the minimum anyway. The rumours say you should pay a few quid over.

Does anyone know of this. Is it hearsay?

You should pay as much as you can afford, thus avoiding as much interest as possible and getting the capital down. Even on a 0% interest rate, you should pay a little more, to enable you to pay it off within the allocated time frame.

d70cw6

wannabe_credit_free wrote: »

You should pay as much as you can afford, thus avoiding as much interest as possible and getting the capital down. Even on a 0% interest rate, you should pay a little more, to enable you to pay it off within the allocated time frame.

better to pay the minimum and save the difference into a high interest account / whatever until the end of the 0% period, no?

dresdendave

d70cw6 wrote: »

better to pay the minimum and save the difference into a high interest account / whatever until the end of the 0% period, no?

"A high interest account".... good luck finding one.

YorkshireBoy

dresdendave wrote: »

"A high interest account".... good luck finding one.

5% (on £2.5K, or £7.5K if there are 2 of you) with Nationwide, 4% (on £3K, or £9K if there are 2 of you) with YB/CB, and 5% (on £4K, or £8K if there are 2 of you) with TSB from the end of the month.

They're quite "high" aren't they?

Not forgetting the plethora of 3% paying accounts available at the moment.