- Discussion board

the minimum balance due on a credit card? I have heard many things. Like yes, pay the minimum because it shows "revolving credit" then I hear "No. Way to many finance charges, and that's how you get in debt." Which is credit? I am trying to build my credit.

I am not sure I understand the "revolving credit" suggestion. Perhaps the person who gave you this advice misinterepreted the definition of "revolving credit". On you credit report, the credit line for any card is reported as "revolving" regardless of balance.

Now, if you only pay the minimum for each month, you're going to end up paying the maximum possible interest. That's because most of your payment will go to cover the interest and your balance will only decrease a little bit.

Just try analyzing a few consecutive statements to see what exactly you're paying and how much your principal amount is decreasing in relation to your payment.

In short, my recommendation is to always pay as much as you can, especially on high-interest credit cards. You'll save a lot of money by paying MORE than the minimum.

I hope this helps.