According to my USAA auto insurance bill:

  • minimum amount due: the lowest amount due for your policy to remain current

  • statement balance: the balance of your billed policy premiums at the time of your last statement

Would paying the minimum amount due cost me interest or hurt my credit?

  • 2
    Paying minimum due usually results in your paying service fees or interest. If so, them unless those are extremely low or you have cash flow problems that force you to do otherwise, it is better to pay the statement balance in full. None of which has much to do with your credit, just your wealth. – keshlam Jan 22 '17 at 20:37
  • This is not the case @keshlam for USAA. While in the general sense your statement may be true, I feel that they are encouraging members to use the USAA CC to gather points on their insurance purchases as there is no fee for the credit card transaction and no fee for paying the minimum monthly. – Pete B. Jan 23 '17 at 13:12

As a long term USAA member I almost always pay the minimum due. This amount is usually 1/6th the statement balance. This will not hurt (or help) your credit in anyway. There is no fee/interest to paying only the minimum amount due. (There used to be, but no need to go into details as it was many years ago.)

This bill can be automated. If you are one that responsibly gathers credit card benefits you can use a card to auto pay the bill without fee. If you are one that carries a balance on their credit cards then it is best to have it auto debited from your checking account, just be sure to have a bit of a cushion as the amount can fluctuate a bit.

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