The Capital One minimum payment for most credit cards is either $25 or 1% of your statement balance plus any interest and late fees, whichever is greater. If your balance is less than $25, the entire amount is your minimum payment. Note that the minimum payment amount for business and co-branded credit cards varies by card.
A minimum payment is the least amount you can pay by the due date to keep your account in good standing. There is no standard formula or guidelines for calculating minimum payments, but issuers generally require a percentage of the balance, including fees and interest.
What to know about Capital One card minimum payments:
- What happens if you make just the minimum payment: Making only the minimum payment each month may seem like you’re saving money, because you’re taking such a small amount from your budget while still meeting your monthly obligations.But if you carry a balance, you’ll notice that the balance doesn’t appear to be getting any smaller. That’s because a chunk of your minimum payment is applied to interest, and very little, if any, is paying down the actual balance.
- How to check your minimum payment: By law, Capital One and all other issuers are required to publish an informational chart on your credit card that illustrates how long it will take you to pay off the balance if you make only the minimum payment. It also shows how much you will end up paying in interest.Plus, you can check how much you should pay each month in order to pay off the balance, assuming you make no additional purchases on your card.
- Why you should pay more than just the minimum: When making just the Capital One credit card minimum payment, less will end up being more in the long run. If you’re unable to pay off your entire balance, put down as much as you can without sacrificing your other monthly debts. Any payment above the minimum will be applied to your balance with the highest interest rate.
Not making at least the minimum payment due comes with another set of issues. You will be charged a late payment fee of up to $40 if Capital One doesn’t receive the required minimum payment by the due date. The late fee will be tacked on to your next month’s statement, along with additional interest on top of the unpaid balance.
If you plan on financing a purchase, consider aCapital One card with a 0% introductory APR. Capital One Quicksilver Cash Rewards Credit Card, for instance, offers an introductory purchase APR of 0% for 15 months (19.99% - 29.99% (V), based on the specifics of your credit, thereafter). If you’d like to repay your existing debt with a new credit card, take a look atthe best balance transfer credit cards available right now on the market.
This answer was first published on 04/21/23 and it was last updated on 02/09/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
The Capital One minimum payment for most credit cards is either $25 or 1% of your statement balance plus any interest and late fees, whichever is greater.
What is the minimum payment on a credit card balance of $5000? ›
Apply the percentage to your current credit card balance and then add your fees and past-due amounts. First, you'll owe 2% on the balance of $5,000, then you'll add $120 past due and $80 in late fees. That would make your minimum payment $300.
What happens if I only pay the minimum payment on my credit card? ›
If you pay the credit card minimum payment, you won't have to pay a late fee. But you'll still have to pay interest on the balance you didn't pay. And credit card interest rates run high: According to November 2023 data from the Federal Reserve, the national average credit card APR was 21.47%.
What is the minimum payment on a credit card with a $10000 balance? ›
If you only make minimum payments, a $10,000 credit card balance will cost you $16,056.59 in interest and take 346 months to pay off. Minimum payments on a $10,000 balance would start at $267 and decrease as you paid down what you owe.
How long to pay off $5,000 credit card with minimum payment? ›
During that time, you'll pay a total of $9,332.25 in interest for a total payoff cost of $14,332.25. 2.5% of the balance (inclusive of interest): It would take 505 months to get rid of your $5,000 credit card balance making just minimum payments at 2.5% of your balance. That's over four decades of payments.
How long will it take to pay off $7000? ›
It will take 21 months to pay off $7,000 with payments of $400 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
How long would it take to repay a $2000 credit card debt? ›
If you can pay $100 a month, it might take you 25 months to pay off the debt. If the card has the same APR but an annual fee of $100, it might take 29 months. And if you can pay $300 a month for a 20% APR card with a $100 annual fee, it might take you 8 months to pay off $2,000.
What is the Amex minimum payment? ›
The American Express minimum payment is the highest of: The interest charged on your statement, plus 1% of your new balance (excluding any overlimit amount, penalty fees, interest charges, or other plan balances). 2% of the new balance, excluding any overlimit amount, penalty fees, or other balances.
Is $25,000 a high credit card limit? ›
Yes, $25,000 is a high credit card limit. Generally, a high credit card limit is considered to be $5,000 or more, and you will likely need good or excellent credit, along with a solid income, to get a limit of $25,000 or higher.
What is the minimum payment on a $7000 credit card? ›
Example: Your card issuer requires you to pay 3% of your outstanding loan balance. You owe $7,000 on your credit card. The minimum payment is 3% of $7,000, or $210.
The minimum payment is the smallest amount you're required to pay on your credit card each billing cycle. Minimum payments are usually calculated based on your monthly balance. So if you max out a credit card, your balance will go up. That, in turn, will likely raise your minimum monthly payment.
Will my credit score drop if I pay minimum payment? ›
Continuing to make purchases will also affect your credit utilization ratio if you only make minimum payments. The interest will cause your balance to grow more than it decreases, and your credit score could drop.
Why is it bad to make the minimum payment on a credit card? ›
What happens when you only make the minimum payment. While it's important to make at least the minimum payment, it's not ideal to carry a balance from month to month, because you'll rack up interest charges (unless you're benefiting from an intro 0% APR) and risk falling into debt.
How much would a $5000 loan cost per month? ›
Based on the OneMain personal loan calculator, a $5,000 loan with a 25% APR and a 60-month term length would be $147 per month. The loan terms you receive will depend on your credit profile, including credit history, income, debts and if you secure it with collateral like a car or truck.
How to pay off $5000 quickly? ›
Debt avalanche: Make minimum payments on all but your credit card with the highest interest rate. Send all excess payments to that card account. Once you pay that account off, send all excess payments to your next highest rate. Repeat until all of your debts are paid off.
What does $5000 minimum credit line mean? ›
If your credit card has a limit of $5,000, for example, it means you can carry a balance of up to $5,000 on your credit card. Your credit card limit includes both new purchases and balance transfers — as well as any other transactions that draw against your line of credit, such as cash advances.
