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If I pay my minimum payment on a credit card can I spend up to my credit limit after?
Wiki User
∙ 6y ago
Yes. You should try to clear as much as you can though.
Wiki User
∙ 6y ago
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How credit company manage credit?
Credit Company manage it by way of evaluating there customer on how they will use it and spend it. Some credit company limits their credit so that user can limit also the way they will spend it.
What is a credit card limit?
it is the maximum amount of money you can spend on a credit card, and it is all based on your credit rating and income.
Do you receive credit every month with your credit card if you have spent your limit and payment is not yet due?
Yes and No. Yes, it important that you pay your credit cards on time. And the "No" is because if you spend to your limit it is not good for your credit score. Why and how is your credit score determined? Because 35% of your credit score is paying your credit cards on time and the other 25% is your debt to available credit ratio (for example, if your credit limit is $1,000 and you only have one credit and you spend $1,000 you are using 100% of your available credit which has a negative impact on your credit score) the credit agencies like to make sure that the ratio is less than 30% of your available credit which would be $300 or less per month on your credit card. The rest of the 40% of inquiries, length of credit history and other misc. things they look at.
What is over the credit limit?
Put simply - it means you have exceeded the limit set by the card company. For example - if your balance is 400, and you have a limit of 500 - then spend 150 - you exceed your limit by 50
Why should every middle schooler have a credit card with no limit?
Umm... they shouldn't. No middle school child should have a credit card with no limit. That will just tempt them to spend, and even if you're responsible, you most likely can't control spending a lot of money if you have no limit.
Where can I find advice on improving my credit score online?
You can always find resources online to help you improve your credit card, but the basics of improving your credit is to always watch what you spend your money on and always paying your minimum payment on time.
How credit company manage credit?
Credit Company manage it by way of evaluating there customer on how they will use it and spend it. Some credit company limits their credit so that user can limit also the way they will spend it.
What is a credit card limit?
it is the maximum amount of money you can spend on a credit card, and it is all based on your credit rating and income.
Do you receive credit every month with your credit card if you have spent your limit and payment is not yet due?
Yes and No. Yes, it important that you pay your credit cards on time. And the "No" is because if you spend to your limit it is not good for your credit score. Why and how is your credit score determined? Because 35% of your credit score is paying your credit cards on time and the other 25% is your debt to available credit ratio (for example, if your credit limit is $1,000 and you only have one credit and you spend $1,000 you are using 100% of your available credit which has a negative impact on your credit score) the credit agencies like to make sure that the ratio is less than 30% of your available credit which would be $300 or less per month on your credit card. The rest of the 40% of inquiries, length of credit history and other misc. things they look at.
How much would one have to spend at SuperMediaStore to receive free shipping?
When you shop at the SuperMediaStore there is a minimum limit you need to spend in order to qualify for free shipping. The minimum amount you need to spend in one transaction is $50.
What is over the credit limit?
Put simply - it means you have exceeded the limit set by the card company. For example - if your balance is 400, and you have a limit of 500 - then spend 150 - you exceed your limit by 50
How does a person start the process of becoming debt free?
You can be debt free by minimizing the use of credit card and try to pay more than the minimum payment each month and don't spend more than u earn.
What is the best way to pay off my credit cards and student loan debt?
To pay off loans and debt, be sure that you are paying more than the minimum payment. Stop using your credit cards and pay for everything with cash. When you see actual cash going out, you will me less likely to spend.
Why should every middle schooler have a credit card with no limit?
Umm... they shouldn't. No middle school child should have a credit card with no limit. That will just tempt them to spend, and even if you're responsible, you most likely can't control spending a lot of money if you have no limit.
What happens if you spend more than your credit limit?
They will charge you an over the limit fee of probably 30$. They may even raise your interest rates if you frequently do this. This is also bad for your credit score. Never utilize more than 30% of your total available credit.
Is it better for your credit to pay the balance on your credit cards in full or make the minimum payments?
Utilization is the word in the credit industry. This term describes the ratios and percentages of credit usage as compared to your credit limit. Since your credit file and score have no data on income, this is the only way for the complex credit scoring program to determine how much of your money you spend each month. The target range for maximum scores is two to four revolving accounts. They need to be used (charged on) each month and they MUST be paid on time. Charging no more than 30% of WHATEVER your credit limit is, and paying on the account in a timely manner can add 30 points to your score. For the purposes of obtaining a higher credit score, it doesn't matter whether you pay in full or make the minimum payment. Paying ON TIME is what is important. (Budget and financial considerations are another matter entirely. Paying the minimum payment on even a $3000 balance can cause consumers to pay thousands of dollars in interest and take years to pay the balance off.) If you the pay the balance off continuously then you stand to get a few more perks from your credit card company (like the Gold Card), but there is nothing wrong with paying the minimum payment. Unfortunately, the longer it takes you to pay off your credit card debt the more interest you will be charged (which is over 19% in most cases.) If you have a good credit rating, please check out some other Credit Card Companies as many have lower interest rates. From what I understand, the best way to increase your credit rate (by means of cards) is to maintain a small revolving balance. You have to use each account every month, but you shouldn't pay off each one in full every month. Reason for this is that card companies report to the bureaus once a month after receiving your payment. All they look at is your limit, balance and timeliness of payments. If your balance is $0 every month on each account, then you're not showing any activity. If you always maintain a balance of at least a dollar, this shows the bureaus that you're actually using your accounts and paying interest (very little at $1).
Why are credit cards dangerous to irresponsible people?
Because they let irresponsible people, spend and spend when they do not have the means to pay. Also, when an irresponsible person keeps charging things on their credit card, it really adds up. $5 for fast food here, $7 for a movie there - will quickly add up and it is easy not to realize before it is too late. Then, when you have debt with the credit card companies, they charge you very high interest rates and tell you that you can make a "minimum payment", where if you keep making the minumum payment you will be paying off the credit card company for many years to come. So a debt of say $10,000 turns into paying like $30,000 or $40,000.
