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Absolutely. It won't be hurt as badly as not paying, but your credit report usually shows a status that reads "pays as agreed." If you're paying less than the minimum amount due each month, you're not paying as agreed and your credit can get dinged.

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โˆ™ 2006-04-03 15:13:20
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Q: Can your credit be damaged by paying less than what is due on time?
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Related questions

Can a credit card company sue for paying less than the minimum?

Yes, a card company can sue you for paying less than the minimum amount because you are violating the terms of the agreement. They will not sue you unless you are very far behind or owe a lot of money.

Is equipment a debit or credit?

it is a credit because more than likely the job is paying for it

Is it better to file bankruptsy or be late on bills?

It is less detrimental to your credit score to be late on paying your bills (more than 30 days late) than it is to file bankruptcy.

Is office equipment a debit or credit?

it is a credit because more than likely the job is paying for it

If you pay less than minimum amount on credit card what happens?

You do not want to waste you time paying less than the minimum on your credit card. Paying less than the minimum is like paying the bill late. It won't count. For example, if they ask for a minimum payment of $10 and you pay only $9 the credit card company will bill you a late charge then your finance charges will go up by the following month! This will cause you unnecessary problems. Avoid this by always paying the minimum at least. Do not waste your time paying a bill if it's not the right amount. Pay at least the minimum amount. Always! If the credit card asks you for a minimum payment of $10 and you only pay $9.99 , the payment will not count. You will create problems for yourself! What happens is they will add a late charge to your card. It's like not paying at all. Also, they can add higher finance charges! avoid this for yourself.

Does paying off a loan help your credit score?

It can help if your indebtedness is high such as too many credit cards and high balances, a car note and mortgage payment. You DIR (debt to income ratio) determines your credit worthiness. To buy property, it should be less than 35%. With the housing crunch and foreclosures at an all time high, less than 30% would be better. On the other hand, if the loan is all you have, paying it off might not be so good. Creditors consider on-time paying habits essential. No outstanding credit doesn't show you pay bills on time.

Isn't paying no interest loan by paying monthly due amount better than paying in full in term of improving credit score by having good payment history?

Making monthly payments on a no interest loan is way better than paying it off in full if you are looking to improve your credit score.

Can you stop paying your credit cards if you are dying?

If you die than you won't have to dumbo

Is bad credit erased in 7 years?

NO. If you have bad credit, it will only be erased if you make it better. Paying bills on time, paying more than is due on payments and staying within your spending budget is a way to build your bad credit into good credit.

How do cash flow problems arise?

When you are receiving in less than what you are paying out.

What are some tips on credit card bill payoff?

Some tips on paying off credit card bills include paying more than the monthly minimum, setting a budget, and consolidating debt. Experts agree that paying off the credit card with the highest interest rate is a good first goal.

Will paying an old closed account raise credit more than paying an old open one?

== == There is no difference in credit score increase if you pay a close or open account off. Paying an account is always a good idea, and eventually it will increase your score.

How does a country get a carbon credit?

It produces less than its greenhouse gas target.

How much time in jail can you get for not paying child support?

Less than 6 months, generally much less. The idea here is not to imprison you, but rather to frighten you into paying.

How do you had positive credit to your credit report?

Pay your bills on time. Don't use more than 30% of your available credit. Establish a long history of paying your bills on time.

Can you go to jail for not paying back financial aid?

realistically, no they can not. Just horrible credit and a bad life, which is arguably worse than jail, which only hold criminals with 2 or less years to serve.

Will your credit score go down if you pay less than the minimum due on credit cards?


Will you go to jail for not paying your credit card?

More than likely you will not go to jail. If it was obvious that your intent was to run up a ton of credit card debt and you had no intentions of ever paying it, then you could be going to jail. Normally it will just ruin your credit for years and years to come.

What is a good APR?

It depends on what you are getting credit for. A home loan with an APR less than 5.5% is good. A credit card with an APR of 15% or less is good.

How fast can you raise a credit score of 517?

I got mine from the low 500s to high 600s in less than a year by paying off a lot of debt and re-building a solid history of on time payments.

If you settle for a lesser amount due from a collection agency will it have a negative affect on your credit report?

Any collection account on your credit report is considered a derogatory listing regardless of status (unpaid, paid or settled). All accounts of this type have a negative impact on your score depending on when they are last reported/updated. Since settlement is paying less than the full amount due, this is obviously seen as less favorable than paying in full. But, once again, it is the date last reported that impacts the score.

Why does it cost more to buy things on credit than paying cash?

When you buy something on credit you not only pay the store, but also the credit card company. With cash, you pay only the store.

How can one improve a low credit score?

The first thing to do is to find out your credit score. If you have any credit cards, pay them down or pay them off. The less that you owe the better. Minimize the number of credit cards that you have. One or two cards is easier to handle than five. Simple things like paying your utility bills on time will also help to boost your ratings.

Can you negotiate with a lender to remove a repossession on a credit report through a settlement of paying less than owed or will the credit report show settlement of partial payment of debt?

The way it is reported is the decision of the credit reporting bureau. It might be listed in different ways on individual reports. Generally it will remain on the report as a " settlement",not as a "satisfied in full."

How does over paying your credit card affect your credit score?

There is no such thing as "over paying" a credit card unless you are paying more than the total amount owed. If you mean to pay more than the minimum, it is always a good idea to do so since most credit card minimum payments are stretched over many years. (and that's if you don't use the card during that time!) Also, if you continue to pay more than your minimum and your total balance decreases (and all other things are the same) your credit score will improve because you are "paying off your debt" and you are able to handle the debt you have. If you pay more than the minimum but your balance doesn't decrease you score may still improve, but not as much.