0% Credit Card affecting Credit Rating

kaisquared

Hi all!

I am aware that with a normal credit card, any balance left over at the end of the month is liable to be charged interest at what ever rate agreed and this will affect your credit rating/score.

My question is: is this the same with 0% credit cards (credit score being affected)? I have read that you should at least pay the minimum every month. So if you pay the minimum and not pay any of the remaining balance in full then does this still affect your credit rating even though it is 0%?

Hope this makes sense.

Regards

K

[Deleted User]

It's fine to pay the minimum on 0% card, as there is a promo flag that removes the usual negative connotation of a min payment.

Shakin_Steve

You must pay the minimum each month or you will get a missed payment marker on your credit file. The amount you owe on the card will also show on your file, and whether it is a promotional offer or not.
Potential lenders will see that you are only making the minimum payment because it is a promotion, and not because you are struggling, but will still take into account the % of credit you are using.

As people keep trying to hammer home on here, your credit rating is a number made up by the credit agencies for you to see, no one else.

Marcio45

You should not be so concerned about the credit rating - as supplied by the credit rating agencies. Each lender will see you differently but depending on what information is in your credit report and the way you manage your bank/credit accounts.
I dont think that having a balance left over paying interest in your credit card will make such a big dent in your credit rating. That is the point of credit. What is more important is to keep the used credit at less than 50% of the credit limit. Credit cards that are maxed out (using most of the credit limit) are very bad for your rating.
Also, minimum payments are best avoided, because some banks mark you on it. Better to pay just over the minimum payment, even if only by a fiver. And dont forget, even if you have a special deal at 0%, you dont pay interest for that period but still have to make at least minimum payments every month.