credit card question?

[mdc2134]

My limit just went up to about 1500 a month. but here is my Q.

If I bought something that was 1000 dollars and by the time the end of the month came up and i only paid the minimum amount or like 100 dollars a month to pay that off...would that mess up my credit? or should I only use my credit card to buy this 1000 dollar item if i have 1000 dollars in my bank? I mean whats the purpose of paying the "minimum amount" or a little higher.

[StartingOver]

You just don't want to carry maxed out cards. Keep them 30 or so percent below the max.

[Cory Z]

It doesn't matter if you carry a balance from month to month. the only thing that matters on a credit report is that you are making your monthly payments on time.

[Bestadvicedude]

The purpose of only paying the minimum is that you are essentially deferring payment. You have the $1000 good, and the $1000. But, you are paying the credit card interest because of this little perk so paying the minimum is very rarely a good idea. The only way it would be a good idea is if you were gaining a higher percentage rate on the money (the $1000) than the credit card company was charging you, otherwise you end up losing more with the interest you pay. So say that you bought your $1000 item on credit, and then put $1000 in some investment (it doesn't really matter what it is). If the credit card was charging you 22%, then your investment needs to be making more than 22% for it to be a good idea to only pay the minimum. My recommendation would be to only use the credit card if you can pay off the balance before the statement comes due (2 months at the most). It is really easy to rack up a lot of debt.