One Dollar Credit Card Payment Is a Myth

You might have come across the advice that as long as you send at least one dollar to your credit card company they can’t sue you. Any and all logic fails to justify the statement. Until and unless you are meeting the minimum payment on your credit card Bill in violating the terms and conditions of your credit card. And is unlikely that the minimum payment on your credit card can ever be one dollar. Usually credit cards calculate the minimum payment as a percentage of your balance. Even if this percentage is low enough to be about one dollar most credit cards have a minimum payment clause that reads something like “the minimum payment is 2% of the balance or five dollars whichever is greater”. This means that even if 2% of your balance is one dollar you will have to pay at least five dollars towards the minimum payment.

Any time you make a payment that is less than the minimum you are violating the credit card agreement terms and your creditor can comes the you to be defaulting on your credit card payment. Not only can the creditor charge you a late fee on the payment but also increase your credit rate, charge of your account and cell your account to a collection agency. Needless to say this delinquency will also be reported to the credit bureau which will then have a negative impact on your credit score.

Even if one were to consider the possibility of sending one dollar payment with no penalty fee from your creditor, why would anybody want to do that? Sending one dollar will just have your current balance increasing with the interest rate and with the ever increasing balance and the mounting interest you may find yourself under a large debt which you may find increasingly difficult or impossible to pay off any time soon.

It is simply imperative that you should make at least the minimum payment on all your credit cards if you wish to keep your credit card account active and do not wish to be reported as delinquent to the credit bureaus.