Minimum payments and credit rating

Probi

Hi,

I have recently decided to stooze some money via a free money transfer and then free balance transfer.

My original plan was to just make the minimum payments on the balance transfer card, but then I remember reading something that said that only making minimum payments would be flagged on your credit report. Does anyone know if this is the case and if it has a negative impact?

If it does, could I then in theory just keep the direct debit for the minimum payment and then pay an extra £1 during the month to make sure this doesn't happen?

Thanks.

BoGoF

There is a minimum payment indicator on your credit report but also a promotional rate indicator. Whether it's seen as a 'negative' will vary from lender to lender. Are you intending applying for more credit in the forseeable? If not, then no cause to worry about it.

daivid

I've fixed my 0% card repayments at just over the minimum and this has coincided with starting to get better card offers. It is impossible to say if that is why I'm getting better offers but for me a few pounds more a month is worth it to try to recycle the stooze for another year. At other times I've been successful whilst just making minimum payments. My stooze pot is probably too big (2/3 of salary) so I'm likely going to need to pay it down over the next 12months anyhow.

Probi

Thanks, I will most likely just leave the direct debit as it is. I don't have any need for anymore credit in the short term anyway.

MasterplanC

daivid said:

I've fixed my 0% card repayments at just over the minimum and this has coincided with starting to get better card offers. It is impossible to say if that is why I'm getting better offers but for me a few pounds more a month is worth it to try to recycle the stooze for another year. At other times I've been successful whilst just making minimum payments. My stooze pot is probably too big (2/3 of salary) so I'm likely going to need to pay it down over the next 12months anyhow.

When you say 2/3 of salary you mean your annual salary?

daivid

MasterplanC said:

daivid said:

I've fixed my 0% card repayments at just over the minimum and this has coincided with starting to get better card offers. It is impossible to say if that is why I'm getting better offers but for me a few pounds more a month is worth it to try to recycle the stooze for another year. At other times I've been successful whilst just making minimum payments. My stooze pot is probably too big (2/3 of salary) so I'm likely going to need to pay it down over the next 12months anyhow.

When you say 2/3 of salary you mean your annual salary?

Yes it is.