Credit Card Minimum Payments Explained

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  • เผยแพร่เมื่อ 1 ธ.ค. 2024

ความคิดเห็น • 180

  • @HonestFinance
    @HonestFinance  3 ปีที่แล้ว +9

    I hope this video helps you understand credit card minimum payments a bit more.
    Watch more credit card videos: th-cam.com/video/_HfXfKLYV68/w-d-xo.html

  • @mercedeswilkins9085
    @mercedeswilkins9085 2 ปีที่แล้ว +64

    Remember a perfect credit score 800-850 doesn’t mean anything if you don’t have the payment history to back it.

  • @lianalonge1984
    @lianalonge1984 ปีที่แล้ว +61

    For those who think people already know this, there wouldn’t be $925 billion in credit card debt as reported by Forbes on November 29, 2022. I just had my young cousin to watch his video because she was approved for her first credit card. I told her treat your credit card like a debit card . . . DON’T use the card unless you have the cash to pay off your balance before the due date!

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว +3

      Great point!! Sometimes I feel like everybody understands, but a lot don’t or they’re younger and getting started

    • @lianalonge1984
      @lianalonge1984 ปีที่แล้ว

      @@HonestFinance indeed. Thanks for the video!

    • @Charlesmarcel-ee4ke
      @Charlesmarcel-ee4ke 7 หลายเดือนก่อน

      Credit card companies and banks love to see you will a balance it’s okay it take years to get a perfect over 750 credit score alot of people have over 20 years of history and only have 5 cards they all had a 1700 balance that was not paid in full pay down the small amount first then chip down the big amount 💳💳💳💳💳😁👍

  • @toonce101
    @toonce101 2 ปีที่แล้ว +69

    I'm 26 and have always been hesitant to start credit cards! Now I realize credit cards are not scary if you're financially responsible, which I am 🙂 I ordered a credit card today to begin working on my credit score. Thank you for the tips.

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +5

      Good luck w the new card!!

    • @Kaiyats
      @Kaiyats 9 หลายเดือนก่อน +1

      All it takes is for your life to go upside down, you lose your job, you need to eat debt piles up fast

    • @IzahBlack
      @IzahBlack 8 หลายเดือนก่อน +1

      @@Kaiyatsthat’s why you build a savings to fall back on to

    • @pcoleman2562
      @pcoleman2562 13 วันที่ผ่านมา

      @@Kaiyatsok great. But in your own example, someone who doesn't have a credit card and goes through the exact same thing just starves I guess.

  • @admperry1
    @admperry1 3 ปีที่แล้ว +54

    I'm surprised people don't know this..especially when most companies warn you as you make your payment. Unfortunately, right now a minimum payment is all we can afford right now...AS your explanation states in this video. 👍

  • @SalsaHuevos
    @SalsaHuevos 2 ปีที่แล้ว +163

    I thought he had a durag on 🤣💀

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +26

      I’m laughing so hard right now. This is one of the funniest comments ever.

    • @SalsaHuevos
      @SalsaHuevos 2 ปีที่แล้ว +1

      @ISayThingsToPissYouOffToShowHowLameYouAre.🤣 🤣🤣🤣

    • @SalsaHuevos
      @SalsaHuevos 2 ปีที่แล้ว +3

      @@HonestFinance hahaaa thanks!!

    • @CrystalJanelleTV
      @CrystalJanelleTV ปีที่แล้ว +4

      Me too 😂🤣

    • @SalsaHuevos
      @SalsaHuevos ปีที่แล้ว +3

      @@CrystalJanelleTV lmao had me shook at first

  • @geckogal1024
    @geckogal1024 11 หลายเดือนก่อน +7

    i'm 600 dollars in credit card debt rn because of some poor spending habits brought on by seeing my credit line go up😭 as soon as i get my financial aid refund i'm paying this off ASAP. i never want to be in this predicament again

    • @qweenzee3318
      @qweenzee3318 8 หลายเดือนก่อน +2

      omg this!!! i’m in college so i was using it for that

  • @3107SatoPandaxSamurai
    @3107SatoPandaxSamurai ปีที่แล้ว +14

    honestly the minimum payment amount doesnt matter whether it increases or decreases , as long as you pay the full amount every month on time or early before the due date ( choice) then youll be fine

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว +1

      Correct, thanks for commenting

    • @kimberleypuddicombe6168
      @kimberleypuddicombe6168 7 หลายเดือนก่อน +2

      Ok so when you pay the min balance on or before the due date does the statement balance get updated 😮😊😮

    • @kimberleypuddicombe6168
      @kimberleypuddicombe6168 6 หลายเดือนก่อน

      So when do u start to see the balance go down

  • @ReaveIdono
    @ReaveIdono 3 ปีที่แล้ว +18

    Minimum payments only really exist to not destroy your credit imo. I try to play at least 2-3x the minimum payment to get it down fast.

  • @JeffreyGillespie
    @JeffreyGillespie 5 หลายเดือนก่อน +2

    The fact that this kind of succinct information on credit card usage is so hard to find, but credit cards are so easy to get should give you some idea of why so many Americans are in debt up to their eyeballs.

  • @traviousandrews1015
    @traviousandrews1015 2 ปีที่แล้ว +13

    Minimum is just the bare minimum you can pay to get it paid down. Obviously it's better to do more or full

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +3

      That’s right. It’s always better to pay anything more than the minimum

    • @anthonyfaucy2761
      @anthonyfaucy2761 2 ปีที่แล้ว +1

      @@HonestFinance Do you still get charged interest if you pay slightly above the minimum payment? For example even 1 cent over the minimum?

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว

      Yes. Anything below the statement balance being paid in full will start to accrue interest

  • @SeanMillea
    @SeanMillea ปีที่แล้ว +2

    Thank you

  • @harvey4337
    @harvey4337 ปีที่แล้ว +3

    I’ve had people tell me that paying a bit more than the minimum is best and better than paying in full, I’m at a crossroads and I’m just starting with a 300 credit line

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว +7

      This is not good advice. Pay the statement balance in full every month to avoid interest charges

    • @yung_sly4149
      @yung_sly4149 ปีที่แล้ว +1

      ⁠@@HonestFinanceI have a card with 0% intro apr for the first 21 months so does it not matter for me ?

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว +2

      @yung_sly4149 For now you’re good to pay the minimum , but pay it all off before the 0% ends

  • @Gearsandco
    @Gearsandco ปีที่แล้ว +2

    I always try to pay my card in full at the end of the month If I can't I usually pay in big chunks per example if my balance is 1000 I go 4 payment of 250$ this way I would pay it faster and lower the risk of paying too much interest.

  • @dylanbray7689
    @dylanbray7689 2 ปีที่แล้ว +12

    I just got my credit card and there was a promotion that there will be no interest on the card for 12 months. Taking full advantage of that to pay off some expensive items I’ve purchased, but making sure I’m still in the habit of paying a little above the minimum when I have too. Great info to remember tho 👌🏻.

  • @randomfunwithjake27
    @randomfunwithjake27 5 หลายเดือนก่อน

    Getting my first credit card now and hoping i don't make a mistake but as i understand always pay your minimum and then pay even more on top of that but make sure the minimum is squared away

  • @krystlejane
    @krystlejane 3 ปีที่แล้ว +9

    Yikes 😬 didn’t realize they can change apr thanks for the insight!

    • @jesseperez1907
      @jesseperez1907 3 ปีที่แล้ว

      That's what APR means. Annual percentage rate. It is very rare to find a fixed rate credit card, if they still exist.

    • @Joshualibbyy
      @Joshualibbyy 3 ปีที่แล้ว

      @@jesseperez1907 some cards actually still do. Applied bank does

  • @s1s2233
    @s1s2233 2 ปีที่แล้ว +2

    Thank you. This video is really simple and informative. :) Keep up the good work

  • @TheOnlyDJChillWill
    @TheOnlyDJChillWill 8 หลายเดือนก่อน +1

    So what will the interest be if I have paid my statement in full every month, but I pay approx the minimum one month (and then the next month I pay it off)? Will I keep having interest even after I've paid off my balance?

  • @joerip3906
    @joerip3906 2 ปีที่แล้ว +4

    Hey I pay my credit card in FULL every single time. But I can only make the minimum payment this month and will be able to go right back to paying in full after this month. Is this bad? I really don’t want to mess up my credit! Plz responds. Please and thank you.

  • @jesuscares4u261
    @jesuscares4u261 2 ปีที่แล้ว +4

    Thank you for explaining everything in this video. Just got my credit card this year and I was very confused because my minimum payment every month goes up high. Thank you for sharing this knowledge now I'm going to stop using my credit card until I paid it off. I'm thinking about cancelling it.

  • @gokaury
    @gokaury 7 หลายเดือนก่อน +1

    Let's say I have a $200 minimum payment on my new monthly statement. If I pay in $50 increments each week for 4 weeks, will those weekly payments add up to the $200 minimum? Or do I have to pay the $200 in one lump sum for it to be counted as the minimum? If the answer to the first question is yes, I do plan on paying more each week in order to pay more than the minimum. I just need to know if this is the case so I can satisfy the minimum payment requirement.

    • @ashcelebi9301
      @ashcelebi9301 7 หลายเดือนก่อน

      yes, but those individual payments shouldn't reach the date after your due date.

  • @jakefield9942
    @jakefield9942 5 หลายเดือนก่อน +2

    If we pay only the minimum for one month and pay off the full statement like a week after do you lose credit score or anything

  • @Reciprocation_of_goodwill
    @Reciprocation_of_goodwill 2 ปีที่แล้ว +8

    Thank you good sir, I'm young and I've never been taught such things.

  • @Gospeed777
    @Gospeed777 2 ปีที่แล้ว +3

    I've herd you should pay 95 percent by the statement date then the other 5 by the min day so that the credit utilization is reported. Thoughts?

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +1

      Yes it’ll help. Here’s a video exposing it. th-cam.com/video/SlgErfgr_Cw/w-d-xo.html

  • @snailnoodle
    @snailnoodle ปีที่แล้ว +1

    No idea if you'll see this, but I'm having some trouble...
    I'm looking to spend at least $210 and my credit limit is $500.
    If I only use $210, do I need to pay back the full $500 before the due date or do I just pay back the $210?

    • @medcastrophilip544
      @medcastrophilip544 11 หลายเดือนก่อน +1

      I think you only pay what you used

    • @monkeyseemonkeydo432
      @monkeyseemonkeydo432 2 หลายเดือนก่อน

      If you spend 210…and pay back 210…then that’s it…don’t owe anything

  • @gavinkaufmanworld
    @gavinkaufmanworld 4 หลายเดือนก่อน +1

    Great video - really helpful 😁 Thanks for sharing ✨

    • @HonestFinance
      @HonestFinance  4 หลายเดือนก่อน +1

      Glad it helped!

  • @twinklekeller608
    @twinklekeller608 2 ปีที่แล้ว +3

    Very well said. I've been to paying my debt and now almost done. I have new credit card and because of your advice that is honest, simple way, great advice, will apply it. Thank you so much for your help🙏🙏🙏 subscribe too to your channel.☺️😊🥳

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว

      I’m glad the videos have helped

  • @eliashernandez1391
    @eliashernandez1391 2 ปีที่แล้ว +1

    I agree you should always make your minimum payment but that being said you should pay in full if if you can comfortably. Remember to use your credit card they got to make money too sometimes so there's no shame in pain your minimum plus your interest your card will eventually trickle down yeah you're paying interest on that credit card but remember you have the privilege and access to that money that's the whole point of having a credit card

  • @esteylonmartinez6142
    @esteylonmartinez6142 2 ปีที่แล้ว +3

    Hey buddy! Such a great video ,straight to the point and valuable information. Could you help me with an important question please. For a few years now I've been paying my credit card in full months after months a week before due date, my credit score is excellent, but I am currently struggling financially and am able to only pay 1/3 or so of my total amount. It will be more than my minimum due balance, but I'm still afraid since its not the full amount that I am accustomed to paying that it will negatively impact my credit score. Is this the case?

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +2

      It could impact your score if the balance you carry is more than 30% of your total limit

  • @yaritzaserna3866
    @yaritzaserna3866 ปีที่แล้ว +1

    Thanks for the info!

  • @icxcnika555
    @icxcnika555 3 ปีที่แล้ว +3

    i pay the minimum payment and some, but i still get auto charged a couple days after interest only ? specifically costco credit card, i thought the minimum payment included all the interest

    • @islajohnson5572
      @islajohnson5572 3 ปีที่แล้ว +1

      Try applying for 10,000$ did you apply I guess that will help sort out some bills and debit for you where are you from

  • @linslins4860
    @linslins4860 2 ปีที่แล้ว +2

    Hi, how about paying 50%, on your CC balance? Is that good enough?

  • @dr.mohamedaitnouh4501
    @dr.mohamedaitnouh4501 ปีที่แล้ว

    Very nice explanation! I would still need clarification about the formula they use. Is it
    (Annual Rate)x Balance /12?
    We know this, but this confirms it! Unfortunately, I lost my job and had to use credit cards sucks! Credit cards can save you. I really thank all of them.

  • @clovernfmk9316
    @clovernfmk9316 3 หลายเดือนก่อน

    I'm a beginner. Wondering what is the point of having a credit card if you have to pay in full. Which literally means you should be able to bear the full cost in the first place. No need credit card then?

    • @monkeyseemonkeydo432
      @monkeyseemonkeydo432 2 หลายเดือนก่อน +1

      When buying stuff online…you are better protected from cybersecurity attacks
      If you use a debit card …those numbers linked to your bank account are not good to be giving out everywhere
      Credit cards have some kind of insurance built in to limit damages to your finances
      Secondly
      Credit cards build your credit rating…meaning you will be able to borrow more in future if you need to for future business

  • @GenshinCouldNever97
    @GenshinCouldNever97 ปีที่แล้ว +1

    What about paying the minimum with money from credit card?

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว

      You can’t use credit to pay a credit card :(

    • @GenshinCouldNever97
      @GenshinCouldNever97 ปีที่แล้ว

      @@HonestFinance yes but we reload the third parties app then transfer to saving acc then pay the credit card. Pay fully like 100$. Pay after statement date. So next month statement it will be the same right? So you can avoid minimum paid and interest.

  • @stickedupent1837
    @stickedupent1837 ปีที่แล้ว +1

    I had a current balance of 545 for the month of December paid it off in full at the end of the month , this month i paid 148$ in full , I realized i had a statement balance of 545? How could that be if i paid that balance in full for the month of December ? Anything im missing doing wrong? I called my bank and was told i dont owe anything but i still see the statement balance?

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว

      Because it was probably calculated after the statement closed. It’s happened to me too and it’s confusing

  • @yendothegamer9880
    @yendothegamer9880 ปีที่แล้ว +1

    If you have good credit just do balance transfer for 18 months free 0% APR

  • @sm0983
    @sm0983 6 หลายเดือนก่อน

    What if you use a credit card with 0% interest for 12 months ,for example, howd that work with minimum payments

  • @joshuaolowe2665
    @joshuaolowe2665 3 ปีที่แล้ว +2

    Very useful thank you man 🤝

  • @rle9937
    @rle9937 2 ปีที่แล้ว +2

    So if I only pay the minimum payment does this interest accrue each day or is this per month when the statement is due?

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +1

      Per month . They’ll take an average daily balance and charge interest each month until it’s paid off

    • @rle9937
      @rle9937 2 ปีที่แล้ว +1

      @@HonestFinance thank you for this!! It’s crazy how many Americans are uneducated on finances.

  • @JRJUNIOR215
    @JRJUNIOR215 4 หลายเดือนก่อน

    what if i make extra payments before minimum payment???

  • @saturdays3984
    @saturdays3984 2 ปีที่แล้ว +1

    Question, what if I paid the minimum payment for now, then I paid it whole (total amount due) before the next due date arrives... will I be charged for interest? how big will the interest be? Thanks.

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +1

      You will pay interest on the remaining balance and on new purchases until the statement is paid in full a couple months in a row, so I’d avoid it if you can

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +1

      And how much you’ll pay is based on your interest rate, how much your balance is

  • @santossalgado94
    @santossalgado94 ปีที่แล้ว

    You are the best man

  • @DiegoRivera-ez4pf
    @DiegoRivera-ez4pf 6 หลายเดือนก่อน

    What if I pay half in one month and half the next month? Does that increase my credit??

  • @tierahoward874
    @tierahoward874 2 ปีที่แล้ว +1

    Thank you so much you really helped me

  • @dohrutnhy
    @dohrutnhy 2 ปีที่แล้ว +1

    i just got a credit card and im still getting used to how it works, im still a teenager lol. but i have like 2 questions to get a good understanding. i have a $500 credit limit, how much of that should be used? i was told around 15% which is like $100-$150. and 2- when i receive my statement, im told to pay the minimum by a certain date, so lets say i have $90 as a new balance but i have to pay like $25 as a the minimum payment, should i pay the $90 in full before the expected date or just the minimum??

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว

      With a $500 limit , try to keep the balance at the end of the billing cycle around $150 or less. And who told you to pay the minimum?? DON’T pay the minimum unless you have no other option. You’ll pay a lot in interest and it’s a rip off. Pay off your statement balance in full by the due date and you won’t pay interest if you do it every month.

  • @imveryhungry112
    @imveryhungry112 ปีที่แล้ว

    What happens to my credit if i cant make the payment one month?

  • @saikik.6534
    @saikik.6534 ปีที่แล้ว +1

    I have a statement balance but not a minimum payment

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว +1

      Hmmm? The minimum should be an option unless your statement balance is lower than the minimum (maybe $50 or less)

  • @Tuloco00
    @Tuloco00 ปีที่แล้ว +1

    So if I pay the minimum will my available balance reset

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว

      No it won’t. It’ll go up by the amount you pay off. If you pay a $30 min , then your available balance will go up by $30.

  • @jeffreyaviles8306
    @jeffreyaviles8306 ปีที่แล้ว +1

    What if u pay a late minimum payment like my minimum payment is on the 22 I literally have nothing right now what if I pay it 2 days later how bad is that on my credit or what’s the negatives

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว

      You’ll pay a late fee and it can be reported on your credit. I think it has to be 30 days late to do that, but I’m not 100% sure. Find the money and pay the minimum if you can . It’s not worth the late fee and penalty APR at all

  • @MrYossi2010
    @MrYossi2010 2 ปีที่แล้ว +2

    Thanks for doing this video and clearly explaining the concept of minimum payment. I have struggled to understand this.

  • @markroth5129
    @markroth5129 6 หลายเดือนก่อน

    Thank you for the insight

  • @Trezn
    @Trezn 2 ปีที่แล้ว +1

    What if you get a new cc with 0% apr and you pay the min just so they report 100% payment history still

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว

      That will work, but eventually it’ll catch up if you owe a bunch of money and the 0% goes away. So try to pay off the card and continue paying 0%

  • @themichael3105
    @themichael3105 3 ปีที่แล้ว +1

    Great vid. Thanks!

  • @followerofjesustilltheend8315
    @followerofjesustilltheend8315 ปีที่แล้ว +1

    Okay but my question is when I go to make the minimum purchase if I just tap other purchase and pay more than 10% do I have to click on the minimum purchase option to get the date erased on my card or can I just click other payment option and then pay more than what I am asked to pay and that would count for my date I'm waiting I was supposed to pay

  • @oldschoolgamer6427
    @oldschoolgamer6427 5 หลายเดือนก่อน

    Can you request with your bank to lower your minimum payment?

  • @Sebastianx007
    @Sebastianx007 ปีที่แล้ว

    What about the billing cycle using your credit card let's say after February's billing cycle has posted and the balance is more now but February is paid for and the remaining balance hasn't posted yet

    • @ashcelebi9301
      @ashcelebi9301 7 หลายเดือนก่อน

      It means remaining balance is still on a pending status. Try to create an account on your bank's website or call customer service

  • @coldfirebeats1
    @coldfirebeats1 ปีที่แล้ว

    so what if i pay 15% of my balance instead of 30% ,with the 5000 balance would that make that minium $25 -$125

  • @ubaidshahid5932
    @ubaidshahid5932 ปีที่แล้ว +1

    Helpful ❤

  • @walkingriver6104
    @walkingriver6104 2 ปีที่แล้ว

    Great Video!

  • @mimamimoo
    @mimamimoo ปีที่แล้ว

    What happens if i only pay min amount fue

  • @ezraarriaga8974
    @ezraarriaga8974 3 ปีที่แล้ว +8

    Wait I have been paying off my credit card every month… like all of my current balance…. I thought you had to pay everything you owe at the end of the month 😭😂

    • @withloveleli
      @withloveleli 2 ปีที่แล้ว

      It varies per credit card. Ones with financing or installment payments arent like that others like bank credit cards you should pay off ur balance each month.

    • @traviousandrews1015
      @traviousandrews1015 2 ปีที่แล้ว +1

      That's exactly what you should do! But you don't have to if you're in a jam. If you can pay it all, do it! You shouldn't spend more than you can pay.

    • @SleepZoneX
      @SleepZoneX 2 ปีที่แล้ว

      Hey I’ve been doing that to. But I realized that I have a minimum due each month not the full balance

    • @undergroundhead5
      @undergroundhead5 28 วันที่ผ่านมา

      Keep pretending that's what you must do lol!

  • @MrAnjuubaba
    @MrAnjuubaba 2 ปีที่แล้ว +1

    Good video,
    What about this scenario, Lets say if someone is spending 1000 on groceries every month but paying by cash or debit card. His budget allows only minimum payment or slightly more than minimum payment, lets say 300 to pay old loan of credit card
    Would it be better for him to purchase groceries by credit card and pay in same month that is same day or maximum 4 days. Now in the same month he is paying 1300 instead of 300. Will the extra 1000 will be deducted from previous loan? and is it good for him to continue like this.

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +1

      I would not add to the credit card if you’re currently paying interest. This is because they charge interest based on your average balance, so just keep paying it down, but don’t add $1,000 because it’ll still charge some interest (even if you pay it off that month). It will not bring down your previous balance at all

    • @MrAnjuubaba
      @MrAnjuubaba 2 ปีที่แล้ว +1

      @@HonestFinance Thanks

  • @dogol-cha7801
    @dogol-cha7801 ปีที่แล้ว

    bro, thank you!

  • @lcriveralcr1627
    @lcriveralcr1627 5 หลายเดือนก่อน

    I have capital one secured card my limit is 300 my minimum payment is on June 16 and the due date is on the July 11
    I’m keeping my utilization low but I’m confused it says your statement closing date is atleast 20 or so days from the due date I counted that from July 11 to June 16 it’s about a 20 day gap I paid my card down from the minimum payment date because I thought that day was when my info gets reported to the credit bureau so I paid it down for it to be around 10% and my due date is until July 11 which is only 25$ am I doing this wrong some videos say one thing and another other I’m confused this is my first card .

  • @Jimfromearthoo7
    @Jimfromearthoo7 ปีที่แล้ว

    I’m trying to lower my monthly payment due on my cc.
    I owe about $8600 snd
    Citi bank is asking for $343.
    I can maybe make $250.
    I can I negotiate this ?
    Thanks

  • @Blessedgreenlight
    @Blessedgreenlight 2 ปีที่แล้ว +1

    Can i make a minimum payment if i have to but then say few weeks later pay off the amount instead of going as the statement says like this many years and stuff would that be possible?

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว

      Yes you can do that. You can make as many payments as you’d like

    • @Blessedgreenlight
      @Blessedgreenlight 2 ปีที่แล้ว +1

      @@HonestFinance I can pay it off after the deadline as long as I make the minimum payment within due date as my goal is not to receive any penalties.

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว

      Make sure to pay at least the minimum before the due date, but you will pay interest. if you don’t pay at least the statement bal by the due date and you won’t pay interest if you do this every month

    • @Blessedgreenlight
      @Blessedgreenlight 2 ปีที่แล้ว +1

      @@HonestFinance okay understood

  • @CindyFily
    @CindyFily 3 ปีที่แล้ว +5

    Does this apply for bank credit cards as well? I usually pay more than the minimum but always still owe about 5% of my credit limit. Is it safe to do that? So far I haven't seem to get charged.

    • @HonestFinance
      @HonestFinance  3 ปีที่แล้ว +1

      Bank cards will work the same way

    • @CindyFily
      @CindyFily 3 ปีที่แล้ว +2

      @@HonestFinance Oh okay. It is good to have balance constantly? Or should I sometimes get it down to $0.00?

    • @HonestFinance
      @HonestFinance  3 ปีที่แล้ว +2

      It’s up to you. As long as the balance is low and you pay off your statement bal in full each month, you don’t need to worry about much

    • @CindyFily
      @CindyFily 3 ปีที่แล้ว +1

      @@HonestFinance Oh okay. Thank you.

  • @Mokimrozaradi273
    @Mokimrozaradi273 2 ปีที่แล้ว +2

    Does paying minimum affect your credit score ?

    • @HonestFinance
      @HonestFinance  2 ปีที่แล้ว +1

      It can if you owe a lot compared to your available credit. Here’s a video I made that might answer your question in more detail. th-cam.com/video/4vNLQjioIVY/w-d-xo.html

  • @danyestrada100
    @danyestrada100 2 ปีที่แล้ว +1

    17% Rate do you mean the APR?

  • @mohit8308
    @mohit8308 ปีที่แล้ว +1

    does 0% APR credit cards has any minimum payment for that specific where company is changing 0 interest?

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว

      You’ll still have a minimum to pay, but it’ll be 0% for the promo period

  • @kimberleypuddicombe6168
    @kimberleypuddicombe6168 6 หลายเดือนก่อน

    Hi i really need ur help with something 😊

  • @ishvigor
    @ishvigor 3 หลายเดือนก่อน

    150 for 5000 owed buddy your math is way off more like 500

  • @sparklejumpropequeen3794
    @sparklejumpropequeen3794 ปีที่แล้ว +1

    I have a question. It says my minimum payment of $25 is due on 07/21. And it says my last statement balance is $271.30, but so far I’ve used $390.82 of my $2,000 credit. I have the money to pay in full but I’m not sure weather i should just way for the minimum pay due date or if I should just pay in full right now. I also have autopay on but I’m not sure how much it of my whole fees it pays ( if it only pays the minimum payment due or the whole thing)

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว +1

      Great question. Pay off the statement balance of $271 in full by the due date to avoid paying any interest. Never pay the minimum because it’s a rip off. And the reason you’re seeing $390 is because you’ve made more purchases since $271 closed as your statement. That’s 100% normal . Autopay probably pays the statement , but I’d double check

  • @llewellyn56
    @llewellyn56 2 ปีที่แล้ว +2

    Great video. Thank you. I never use credit card only emergency. Credit score excellent. I try not to spend a lot. I use cash.

  • @HoldenMuhKnutz
    @HoldenMuhKnutz 3 ปีที่แล้ว +13

    I pay $3 over the minimum 😂

  • @kathiethompson6719
    @kathiethompson6719 3 ปีที่แล้ว +4

    Pay the minimum plus whatever interest was charged during that billing cycle. Best advice: STOP USING CREDIT CARDS.

    • @traviousandrews1015
      @traviousandrews1015 2 ปีที่แล้ว +4

      Nah, use them correctly! I've used them for years and years and barely paid interest

    • @bionicwoman9884
      @bionicwoman9884 2 ปีที่แล้ว +2

      I use mine responsibly and never pay interest so no I will not stop using them.

  • @WordDefinition
    @WordDefinition 2 ปีที่แล้ว +1

    Do not look at the minimum payment. Instead look at the statement balance. Minimum payments are for losers. Paying your statement balance is the secret to using your credit card. If you can’t pay your statement balance you are spending too much then the word money is the root of evil comes to mind.
    Be careful. This is were people are scared of credit cards. Interest are monsters.

    • @malsroomm
      @malsroomm ปีที่แล้ว +1

      so is it best to pay my statment balance a couple days before due date?

    • @WordDefinition
      @WordDefinition ปีที่แล้ว

      As long the statement balance is paid beforehand or on the due date

    • @HonestFinance
      @HonestFinance  ปีที่แล้ว

      Yes, pay it in full. And then pay down your card again right before the cycle closes

  • @jaimerosas1458
    @jaimerosas1458 ปีที่แล้ว

    Can I make a payment before my due date?

  • @walex1101
    @walex1101 ปีที่แล้ว

    🫤 All 3 of my credit cards are maxed out. I am trying to pay the minimum payments price weekly to help pay all of them down.