Whether you are in debt or not, it is important to at least pay the minimum on your credit card bill each month. By paying late, you can significantly damage your credit score. If you miss a payment or don’t pay it at all, not only will you have to deal with late payment fees and higher interest rates, but it can stay on your credit report for 7 years. A late payment alone can really hurt your score, making it almost impossible to get approved for credit cards, loans, rent properties, and more. So, even if you don’t have a lot, make sure to pay at least the minimum on time.
In fact, it is always better to pay more. Only paying the minimum each month may keep you from missing a payment, but it can result in much more debt for you. Paying the minimum insures that you will have to pay interest on the rest of your balance. And if you have high interest, it means you’ll be stuck paying a lot more than you originally would have. Plus, part of your credit score is your outstanding balances. Lenders will see having a balance as risky, and your credit score will be lowered.
Pay your statement in full if possible. And if not, make sure to at least pay the minimum!
