I applied for a mortgage 3 or 4 months ago and got approved but at that time I had 2 maxed out credit cards the balances were close to $2000 total, I realize that isnt a lot but I have them down to $1...
my credit was a 720. now its down to a 675. when i checked on it, the reason was because i only have two kinds of credit, credit card, and car note. i think its also because i have more credit debt ...
I'm seeing 5%..so I think that's about right. It's such a small part of the balance...and it's easy to see people who pay on these things forever and a day.
>>Interesting...Walmart has two:
Regular purchases=the greater of: $15 or 1/24 of the balance..rounded to the next dollar
Big ticket purchases=the greater of $10 or 1/40 of the balance.
I can not remember exactly when but believe that it was
the beginning of 2007 the minimum payment was increased
to 4%, prior to that it varied between 1% and 2%. That
created a long lasting and heavy burden on creditors and
and as defaults started to rise credit card companies
petitioned the government to change the rules of bankruptcy
making it harder for individuals to file, the government
made the requirement to increase the minimum payment
so that people actually had a chance to pay off their credit
Wow, long answer to a simple question but I felt an
explanation was needed
2 to 4 percent is normal in canada
It is usually about 1% of the minimum balance, plus interest and fees charged that month. For instance, if you owed $1000 at 24% interest and had a $5 fee, your minimum payment under this scenario would approximately be (1% * $1000) + (24%/12*$1000) + $5 = $10 + $20 + $5 = $35. (approximation is because your interest is actually calculated on a daily basis, not a monthly basis)
However, every credit card company has their own method of calculating a minimum payment, so you should ask to be sure.