0% credit card minimum payment versus full payment

Zbornak

I've got a 0% on purchases credit card. As far as I can tell, it will not affect your credit score positively or negatively if you pay in full each month. What I'd like to know is if your credit score is affected by making the minimum payment whilst not accruing interest on your balance?

Thanks!

chanz4

make payment £1 over the min, or even a 1p

boo_star

Zbornak wrote: »

I've got a 0% on purchases credit card. As far as I can tell, it will not affect your credit score positively or negatively if you pay in full each month. What I'd like to know is if your credit score is affected by making the minimum payment whilst not accruing interest on your balance?

Thanks!

Minimum payments are reported. As chanz4 says, pay anything above minimum, even a penny.

Sea_Shell

Glad i just read that...dont want to effect credit score whilst benefiting from 0% purchases!

YorkshireBoy

Any minimum payment marker reported will be accompanied by a 'promotional rate' marker, thereby lessening (eliminating?) the impact.


I've never made the additional payment (over and above min payment DDs) in over 10 years of credit card stoozing, and it doesn't appear to have impacted my credit-worthiness at all.


Having said that, if I was managing real debt (as opposed to stoozing debt), ie it *really* mattered that I got the next BT deal, I would pay more.

boo_star

YorkshireBoy wrote: »

Any minimum payment marker reported will be accompanied by a 'promotional rate' marker, thereby lessening (eliminating?) the impact.


I've never made the additional payment (over and above min payment DDs) in over 10 years of credit card stoozing, and it doesn't appear to have impacted my credit-worthiness at all.


Having said that, if I was managing real debt (as opposed to stoozing debt), ie it *really* mattered that I got the next BT deal, I would pay more.

I would assume that a lender would see "promotional rate" as anything from 0% upwards.

They tend to take a pessimistic view so I would imagine minimum payments would still be a red flag.

YorkshireBoy

boo_star wrote: »

I would assume that a lender would see "promotional rate" as anything from 0% upwards.

They tend to take a pessimistic view so I would imagine minimum payments would still be a red flag.

You may be right, but I can only relate my own experience.

However, credit card providers are very keen to get you to sign up to pay by DD. It's unreasonable to expect people to then go on to make an additional payment each and every month. Most people will take the 'easy' option of one payment...a minimum payment DD, certainly during an introductory period of 0% credit.

In short, I believe lenders expect people to make minimum payments only during a 0% introductory period. If they didn't, what would be the point in offering long 0% introductory periods?

But fundamentally, why would the lenders go to the trouble (and cost?) of including a promotional rate marker if they didn't then take it into account when credit scoring applicants?

shortcrust

I don't believe it makes a difference. Lenders aren't going to rely on minimum payment markers to make their decisions. They'll do their own analysis on the raw data and if they want to avoid people who pay the minimum they're not going to be 'tricked' be an extra quid.

Zbornak

Thanks all, there is a bit of polarising opinion so I'll pay slightly over to be safe. May be pointless but there's no harm in trying.

Nasqueron

Zbornak wrote: »

Thanks all, there is a bit of polarising opinion so I'll pay slightly over to be safe. May be pointless but there's no harm in trying.

Do note that your credit "score" is meaningless, it's a generic number that the CRAs generate but only you will see it - the score going up or down has ZERO impact on whether you can get credit or not - all lenders have their own ratings system based on the data provided by the CRA - no lender will ever rate you on the score provided by the CRA - if you are paying a monthly sub for Experian say, it's a total waste of money.

Zbornak

Nasqueron wrote: »

Do note that your credit "score" is meaningless, it's a generic number that the CRAs generate but only you will see it - the score going up or down has ZERO impact on whether you can get credit or not - all lenders have their own ratings system based on the data provided by the CRA - no lender will ever rate you on the score provided by the CRA - if you are paying a monthly sub for Experian say, it's a total waste of money.

I did a month free trial for the cashback and then cancelled. I will likely never see my score again.