Is paying the minimum bad for my credit file?

[Deleted User]

Hello,

I currently have a credit card with £1,200 limit and I need to spend about £300 to get my car fixed as I don't want to claim on my insurance. Problem is I cannot afford to pay the £300 off when the statement would come through. and I need the repair.The current balance of the card right now is £0. I've only had a credit card for 4 months, every month I've paid off in full and on time (my usual balance is average 200-250, but I'm just wondering if paying the minimum (£25) on £300 would look bad on my credit file (asking since I'm trying to build my credit history/file).

System

One off, not a problem. If its a regular thing then yes it doesn't look good.

SnowTiger

DELEtED USER wrote: »

Hello,

I currently have a credit card with £1,200 limit and I need to spend about £300 to get my car fixed as I don't want to claim on my insurance. Problem is I cannot afford to pay the £300 off when the statement would come through. and I need the repair.The current balance of the card right now is £0. I've only had a credit card for 4 months, every month I've paid off in full and on time (my usual balance is average 200-250, but I'm just wondering if paying the minimum (£25) on £300 would look bad on my credit file (asking since I'm trying to build my credit history/file).

If you pay the minimum there will be a marker added to your credit file to reflect that.

It's better to pay a little extra.

You should aim to pay as much as you can, anyway, to reduce the interest you'll be charged.

Mobeer

Different finance companies are looking for different things in a potential customer. To one lender you might appear high risk and hence undesirable. To another lender you might appear highly profitable and hence desirable. You probably don't want to be a highly profitable customer though.