There are bureaus to which companies issuing credit cards send their reports. These reports mention the amount of money paid by the borrowers on monthly basis. Irrespective of the amount paid and the instalments given, the report states the credibility of the borrower. If the payments are made regularly even they are small, the credit score of the borrower stays good.
The data also indicates how much amount is left to be paid. A slight delay and irresponsible attitude towards the same shall hamper your credit score.
The credit categories through which the credibility of a borrower can be judged are mentioned below:-
These factors are analysed and that is how the credibility is rated. They are necessary to be analyzed as otherwise; it is not feasible for the banks to grant loans, to people, with lower credit scores. While studying the factors mentioned in the report, anyone may judge, whether the applicant should be granted loan or not. It is only the responsible ones that get to have the luxury of availing loans for their use.
There are many of you, who can only afford to make minimum payments. But that ways too, it's better to be consistent. Otherwise, this affects the credit scores of the borrowers and later, when they apply for other loans, they application can be rejected
Other key highlight is, if you make minimum payments, while you spend more and make more use of the card, your credit balance increases, this shall again affect your score.
There is no harm in being cautious to keep your credit score good.
