Any danger in minimum payments?

iVillage Member
Registered: 05-09-2005
Any danger in minimum payments?
4
Sun, 05-14-2006 - 7:08pm
I want to change the amount I am paying to my various credit cards -- I want to pay just the minimums on all but one -- and that one will get all the money I can come up with. I like the idea of a target card - BUT I read somewhere that credit card companies look for any reason to raise the interest rates. One of the reasons that was given for them raising rates was if you always just paid the minimums. I have always paid at least a little over the minimums on the cards. Has anyone had them raise the interest rate because you were just paying the minimums??? I don't want to jog them into raising my rates, or I will be in real trouble.
Thanks
Megan
Avatar for 2locachicas
iVillage Member
Registered: 05-14-2003
Sun, 05-14-2006 - 8:21pm

Megan-

We have done this for awhile and have never had any problems. We have had plenty of times in the past where *all* we could pay is the minimums and we have always gotten excellent rates and never been raised. right now our high card is at 9.9 fixed on a daily apr. The one we use all the time is 6.9 fixed(we pay it off every month but the rewards rock).

I wouldn't worry about it. I would say maybe paying the minimums might cause them to run a credit check on you to see if you are maxed but since you aren't they won't do anything. Most people pay only the minimums because that is all they can afford but your credit report will show that is not the case with you....

Loca

iVillage Member
Registered: 05-09-2005
Sun, 05-14-2006 - 9:33pm
Thanks Locachicas -- I have changed the payment amounts -- hopefully no one will care -- but the truth is we are awfully close to the edge of being able to make the payments. We have paid extra, but just slightly extra. I just got a little nervous when I saw that they could use just making the minimums an excuse for raising rates. I really want to stay under the radar while we are struggling with this.
Megan
Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Mon, 05-15-2006 - 8:31am

Megan - We have paid just the minimums for a while and I have really good rates.

Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Mon, 05-15-2006 - 8:53am

Hello,


As far as I know, the credit card companies put clauses in their agreements that let them do *just about anything* if they choose with your account. However, in general, paying them the minimum payment each month keeps you under their radar. If you weren't aware of it, the "Universal Default" clause lets your credit card companies jack up your interest rates if you were late paying *another* creditor, but not them. Paying down your debt as quickly as possible is really the only way to protect yourself from this, along with making the minimum payments on everything each month. If you are never late with any of your credit card payments

Sincerely,
Lindsey Schocke

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