Can credit cards report me if i pay them something a month?

Question

i had some troubles, like a car repair that ended up costing over $1,000. i had been paying my cards on time, but the repair combined with the rental car, and rising gas prices, as well as security deposits on my utilities (just moved to a new rented house), i got far behind. what's worse is that one of my past bills is threatening legal action, so i need to pay them before anything else.

my question is if i pay at leasts something to my other cards each month, can they report me to collection or file a warrant of debt? i plan on starting to pay off my other 2 accounts after i pay off this one, but i can't repay all at the moment, or make the minimum on all.

and yes, i tried calling my other creditors...what they want as a minimum payment i can't afford for the next 2 months, and they are still going to charge me interest. my question is can they start legal action or report me to collections if i pay SOMETHING every month? I know my credit is shot.

Answer 1

If you don't pay them what THeY request as the "minimum payment due" then they will report it as unpaid. They always threaten legal action. Rarely do they take it. It's a scare tactic.

Start sending them letters certified with a return receipt. In the letters explain the situation and let them know what you can afford to pay. Keep copies of the letters and keep the return receipts. This way you will have proof that you have been attempting to arrange payment and if they take action against you, the judge will see you are making an effort.  

If they send it to collections, keep in mind these people make money off of what you pay. Don't push your budget too far to meet their demands if you know your credit is shot anyway.

Answer 2

As long as you are not paying to the agreed upon terms of the credit card they can take action against you, this means even if you are paying something, unless it's the minimum or more they can take legal action.  It usually takes about 3 consecutive months of this before they begin the process of transfering you to a collection agency though.

Answer 3

It must be at least $20, which is their usual minimum.

They even gave me a penalty for Paying Early!!!!!

I paid $500 (whole balance) on the 19th of May, a charge for $200 showed up on the 20th and my cycle closed on the 21st.  My minimum payment was $20, but the amount I paid on my bill before the cycle closed was not applicable!!!!!

Unbelievable, these rules were based on times before people clicked on the internet to pay.  I see a class action suit coming again.

Answer 4

Aside from working something out with your creditors, you need to pay at least the minimum. Perhaps you can consolidate your cards into one big payment. Talk to a credit counselor.

Answer 5

Yes.  By not paying your minimum payment on your credit cards you are not fulfilling your obligations spelled out in the credit card agreement.

I don't know about you but I get credit card offers all the time in the mail that offer zero interest on purchases or balance transfers or both.  They may also offer no cost to transfer your balances.  Try to get one of these cards (lie about your income right now if you have to, they won't know).  Transfer as much of your other balances to that card as you can.  On the new card you won't be paying any interest or fees so every payment you make will go directly towards your debt rather than into the credit cards companies pockets.  

Good Luck

Answer 6

Ive been in ur boat before and it isnt even fun. I empathize with you ... They wouldnt let me pay anything less then the minimun so I just said F it and I paid them when i could catch up ( tax time ) def try getting a consolidation tho, its alot better :] good luck!