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Lately I have been only able to pay some of my credit card bill, much more than the minimum balance, but I do end up having to pay some interest. Is this hurting me in the long run in terms of my interest rates or anything? Also how does it affect my credit score?

4 Thoughts on How does this affect my credit?
  1. Reply
    Steve D
    April 19, 2013 at 12:15 am

    As long as you are not running up the balance and as long as the payments are more than minimum and on-time, you are continuing to positively build your credit score.

  2. Reply
    April 19, 2013 at 12:41 am

    Your credit is not negatively impacted UNLESS you run your card up to where it affects your debt to credit ratio on your report this would lower your score slightly Hope this helps Good Luck!

  3. Reply
    April 19, 2013 at 1:10 am

    Regarding your interest rates with your creditor, you may want to contact them or read your credit card agreement paperwork to get the correct answer. Regarding credit scores I recommend you read what I wrote below so you can get a better understanding of how credit scores are calculated.

    There are five key factors that go into calculating your credit score, with certain items carrying more weight than others. These factors are as follows:

    1. Payment history
    Payment history counts for approximately 35% of a score. It is the most heavily weighted factor used in calculating your credit score. Consistently paying your bills on time has a positive influence on your score, while late or missed payments will hurt you in this area.

    If you have delinquent payments, the older the delinquency the less the negative impact on your score will be. Collection accounts and bankruptcy filings are also taken into consideration when analyzing your payment history.

    2. Total debt and total available credit
    Total debt and total available credit counts for about 30%. This section looks at how much debt you have compared to the total available credit on your accounts. If all of your accounts are maxed out, you will be considered a poor credit risk, because it appears that you are struggling to pay off the debt you have already incurred.

    If your account balances are relatively low compared to your available credit, this part of the risk analysis should help your overall credit score. The score calculation also looks at these two factors independently.

    Having too much available credit, whether you have used it or not, could hurt your credit score, as statistical studies have shown that people with excessive amounts of available credit are a higher credit risk. Unfortunately, the bureaus do not define exactly what they consider excessive, so best tip is to use credit conservatively and to keep your debt-to-credit limit ratio low.

    3. Length of positive credit history
    Length of positive credit history counts for about 15%. The longer you maintain accounts in good standing, the better your score will be. This shows that you are able to make a long-term commitment to a creditor and are consistently responsible about making your payments.

    4. Mix of types of credit
    Mix of types of credit counts for approximately 10%. Having several different types of credit, such a credit cards, consumer loans, and secured debt, will have a positive influence on your credit score. Having too much of one type of credit can have a negative impact.

    5. New credit applications
    The number of new credit applications you have recently completed accounts for about 10% of your score. Applying for too much new credit in a short time period makes indicates that you could be credit risk, as you may be desperately trying to keep your head above water. The models make an exception for people who are shopping around for a loan, so if you are simply applying to see who can give you the best rate on a new loan, you need not worry too much about damaging your credit score.

    While you cannot calculate your own credit score accurately, you can review your credit report on the five factors named above to get an idea of whether the accounts listed on your credit report are hurting or helping your credit score. You can then take action to improve any potential problems, such as paying down your balances or paying off collection items.

    I hope this information helps you Find. Learn. Save.


  4. Reply
    Use Your Noodle
    April 19, 2013 at 1:38 am

    Is the balance you are carrying more than 30% of the limit you were given? If so, yes, that hurts your score.

    Paying more than the minimum and not the entire balance is not going to affect your score UNLESS the previous statement I made is true.

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