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I took a line of credit out 10000 for my sister who is in debt and she is now paying me the minimum payment per month to pay the debt is there any way to transfer the debt to her?
Wiki User
∙ 8y ago
There really are only 2 ways to transfer this debt to her, and both may be unlikely if she has a poor credit rating:
- Ask the lender to add her name and remove your name: This rarely occurs, since it absolves you of all liability of repaying the debt. A lender will want to retain the account holder most likely to repay (the one with the higher credit score).
- She can apply for a separate loan and use the proceeds to repay your loan. It is doubtful she would be approved for a loan with reasonable interest.
Usually, obtaining more debt does not improve a situation. You are a good sister to do this, but know that it could catch up with you in the end if something happens and she cannot repay the debt. Next time, you might want to advise that you are not a bank!
Wiki User
∙ 8y ago
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What builds credit faster paying the monthy minimum or in full?
Paying your bills in full is always better than paying the minimum monthly payment. When you are paying your minimum monthly payment your balance continues to grow because you continue to shop and the interest continues to be add-on and it will take years and years to pay off. (by law, the bill will show how long it will take to pay your bills, if you are paying the minimum monthly payment). That is how people get overly in debt and high balances affect your credit score. my advise is: treat credit cards as a replacement of cash, (to take advantage of the rewards/benefits of the card), NOT AS A FAST LOAN.
Why is it unwise to make the minimum payment on your credit card?
Paying the minimum each month means you'll take longer to pay it off, meaning you're paying more interest.
If you pay less than minimum amount on credit card what happens?
You do not want to waste you time paying less than the minimum on your credit card. Paying less than the minimum is like paying the bill late. It won't count. For example, if they ask for a minimum payment of $10 and you pay only $9 the credit card company will bill you a late charge then your finance charges will go up by the following month! This will cause you unnecessary problems. Avoid this by always paying the minimum at least. Do not waste your time paying a bill if it's not the right amount. Pay at least the minimum amount. Always! If the credit card asks you for a minimum payment of $10 and you only pay $9.99 , the payment will not count. You will create problems for yourself! What happens is they will add a late charge to your card. It's like not paying at all. Also, they can add higher finance charges! avoid this for yourself.
What do you use to buy something now and pay for it later?
A credit card allows you to pay for purchases at a later date. Credit card balances have a minimum payment due, but by paying more than the minimum, you save on interest payments.
Why is it unwise to pay minimum credit on your credit card?
Paying only the minimum due on your credit card balance maximizes the amount of interest you will pay to the credit card company. This is why it is better to pay as much of your balance as you can each billing cycle - it saves you money by reducing the amount of interest you pay. Also, depending on the terms of your credit card agreement, paying the minimum can actually make your principal balance increase. The minimum payment may not cover the amount of interest due.
Explain why it is unwise to make only the minimum payment on your credit card?
becuase your only paying the intrest you owe helping with merit bdge i hope ;)
Where can I find advice on improving my credit score online?
You can always find resources online to help you improve your credit card, but the basics of improving your credit is to always watch what you spend your money on and always paying your minimum payment on time.
What are some options for making a payment to the IRS?
Some options for making a payment to the IRS can be found on their website. One has the options of paying by debit or credit card, making an electronic funds transfer or by check or money order.
Minimum Payment, Minimum Rewards?
Using credit cards is essential for building your credit, but mishandling them can cost you a lot of money. You can wind up paying a large amount of interest. That can lead to a mountain of debt. To avoid these issues, here are some tips on paying your credit card bills. When it comes to paying credit card bills, it is best to pay your balance in full. Most credit cards have a grace period for purchases. This is usually around 25 days. If you pay your balance in full every month within that period, you will never have to pay interest. This is also good for your credit report. If you pay your balance in full every month before the bank reports, you will always have a zero balance on your credit report. That will boost your score significantly. If you can't pay your balance in full, always pay more than the minimum. The minimum payment is designed so that the credit card company can capitalize on your interest rate. Sure, paying the minimum keeps you in good standing. However, it also means you are paying lots of interest. Always pay as much as you can so that you minimize how much interest you pay.
Does paying bills improve your credit score?
Yes, payment history accounts for 35% of your credit score. So paying your bills on time will help you maintain a good credit rating.
Is paying the minimal on credit cards considered a sign of credit trouble?
Paying the minimum amount due on credit card is not necessarily a sign of credit trouble because it actually makes the credit card account current.
How does credit card minimum payment work?
One can pay the minimum balance, usually a fraction or percentage of the total amount owed. As long as you meet this minimum amount faithfully, the credit card company will absolutely love you to bits. You see, by paying the minimum, you are only filling the pockets of the corporation that issued the card - your balance, if pretty high, could take up to 20 years to pay off by just making the min payment. Best advice on CC's - pay the entire bill when it becomes due ... protect your good credit rating, and build better credit history, too.
