Minimum payment habit won’t impact your credit score

For the last one year, I have been paying only the minimum amount on my credit card. I intend to clear the total outstanding on my credit card soon. I want to know how my present payment behaviour impacts my credit score.   
—Suresh Rathod
As you have been regularly paying the minimum amount due on your credit card, the bank will report no amount overdue on this
account and, therefore, your credit score will not have any negative impact. However, you also have to ensure that you regularly pay EMIs on all the loans or credit cards which you may have availed to ensure a healthy credit score.

I have recently settled my credit card dues with the bank. Will this settlement have a negative impact on my credit score?
—Bhaskar Tare
As you and the bank have mutually settled this payment, the bank is likely to report this information as “settled” in your credit report. There will be no negative impact of this “settled” status on your credit score. In fact, after this settlement, you can gradually start improving your score by regularly paying dues on your credit card.

— The writer is senior vice-president - consumer relations CIBIL (www.cibil.com) and can be reached at creditwise@cibil.com