Terms and Conditions
What is a minimum payment?
Almost all credit cards have a minimum payment that is a percentage of your current balance. The calculation of this payment varies from card to card and in many cases, is limited by federal and state rules. The minimum payment is a very crucial number, because it is the smallest payment you can make in a billing cycle to keep your account from being unpaid (“in default”).
If you carry a balance over time, you should expect the minimum payment to go up each month, sometimes by a lot. Whenever possible, try to pay off your credit card debt paid in full or pay as much as you can. Otherwise, you can end up paying a lot more than the original cost of your purchase.
See also:
How is my balance calculated every month?
What is a billing cycle?
What is a balance transfer?
Last update: 2006-09-25 16:45
Author: BKO
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