Credit card payments may double next year!
Question: No, anyone who is paying only the minimums on their credit cards, by > definition, does not have “good credit”.
Yes, they do have good credit because they pay according to the terms of their card.
It just means they haven’t hit the iceberg yet but it’s a good sign they’re imminent. That’s not “good credit” – that’s a signal to head for the lifeboats.
Answer: That would depend on *why* they’re paying the minimum payment.
I have a sizeable balance on one card, I could pay it off tomorrow if I wanted to, but that would be fairly stupid, since it’s at zero interest until some time in 2007. Why should I divert money from productive uses to pay off zero-interest debt? For now I’ll keep paying the minimum, and pay off the card in 2007 with money worth at least 5% less than today’s dollars.
Not that mine is a typical situation, just that paying the minimum does not inherently indicate bad credit.
Related Posts
Filed under: Bad Credit Loan
Leave a Comment
XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
TrackBack URL | RSS feed for comments on this post.