Does Chase Pay Over Time Affect Credit Score?

Most Chase credit card users are usually concerned if utilizing the Pay Over Time option affects their credit score. Chase Pay Over Time is a feature that allows users to pay for some of the purchases in installments instead of making full payments on every statement. This is good for big purchases but do you know that it can harm your credit?

What Chase Pay Over Time Involves?

Chase Pay Over Time is enabled by default in most Chase credit cards such as the Chase Sapphire Preferred and Chase Freedom Unlimited among others. It enables you to purchase goods and services on credit and then repay with interest in installments over a certain number of months.

Every time you use your Chase card to buy something, you can either pay the balance in full or participate in the Pay Over Time program. If you select Pay Over Time, the total amount of that purchase balance will not be due in the following billing cycle. However, it will be charged a balance and you can clear it little by little with interest in several months.

Chase Pay Over Time has two primary choices: The customer can make fixed monthly payments or variable payments. Fixed monthly payments entail making equal payments towards your Pay Over Time balance each month. Variable payments are when one is required to pay at least monthly interest plus one percent of the total balance on the outstanding amount each month.

Is Pay Over Time Bad for Your Credit Score?

There is no way Chase Pay Over Time damages your credit score. Usually, only your credit use ratio suffers from paying a bill off each month; it does not affect your credit history or any other element influencing your score.

At any one moment, credit usage is the percentage of your credit card balances to your credit limit. About thirty percent of credit ratings on the FICO scale are derived from this use ratio. Your score is greater the closer to zero your use is. Most experts advise that the perfect ratio should be less than 30%.

This is why the amount you paid becomes part of your overall credit card debt when you utilize Pay Over Time to pay for a transaction in part instead of the whole amount. A limited credit card balance indicates limited use; a large credit card balance indicates heavy usage. Thus, if the total amount increases significantly, Chase Pay Over Time might hurt your credit score.

Chase Pay Over Time should not seriously damage your credit scores, nevertheless, provided you do not raise the credit card bill to its maximum. Low and reasonable balances normally are managed sensibly and won't damage your credit score. Many consumers who utilized Pay Over Time report no detrimental effect on their results.

If utilized sensibly and without compromising the credit score, Chase Pay may be beneficial over time.

If you want to use the Chase Pay Over Time feature to finance a large purchase without hurting your credit, here are some tips.

• Dividing the total you wish to buy among the several cards helps you avoid running out of one card.
  
• At least, pay the minimum required each month to avoid credit score problems and late payment penalties.
  
• Paying more than the minimum is advised always since it helps speed down the debt balance reduction.
  
• Limit Pay Over Time should only be used for one or two large purchases at any one time, not for numerous little ones.
  
• Pay entire statements on every card not covered by the Pay Over Time option.
  
• Additionally, keep a vigil on your credit score by routinely checking it now and again.
  
• Keep the credit card balances overall low relative to the credit limit.
  
• If you would want extra credit on your Chase credit card, apply for a higher credit limit.
  

So long as you adhere to credit best practices, Chase Pay Over Time can be utilized tactfully without harming your scores. As long as you are making money and paying your credit card bills responsibly, your credit score will remain healthy and stable with low credit card utilization. However, if you observe that your scores are dropping, you should take a closer look at your balances.

Ready to boost your credit score? Call +1 888-804-0104 now for the best credit repair services near you! Our expert team is here to help you achieve financial freedom and improve your credit. Don't wait—get started today!