Dec 17, 2021
Fact checked
Written by Adam McCann
WalletHub Financial Writer
Fact Checked by Alina Comoreanu
WalletHub Senior Researcher
What Is the Minimum Payment on a Credit Card?
The minimum payment on a credit card is the lowest amount of money the cardholder can pay each billing cycle to keep the account’s status “current” rather than “late.” A credit card minimum payment is often $20 to $35 or 1% to 3% of the card balance, whichever is greater. If the dollar amount is higher than the actual balance charged to the card, then the full balance is the minimum payment. The exact details differ from issuer to issuer, though.
Table of Contents
How Credit Card Minimum Payments Are Calculated by IssuerWhat Happens If You Only Pay the Minimum Payment on a Credit Card?Other Key Things to Know About Credit Card Minimum Payments Credit Card Minimum Payment FAQ
How Credit Card Minimum Payments Are Calculated by Issuer
| Card Issuer | Standard Minimum Payment | Pay Full Balance If Less Than... |
|---|---|---|
| American Express | 1% of balance or $35 (whichever is more) | $35 |
| Bank of America | 1% of balance or $35 (whichever is more) | $35 |
| Barclays | 1% of balance or $25-$29 (whichever is more – dollar amount varies by card) | $25-$29, depending on the card |
| Capital One | 1% of balance or $25 (whichever is more) | $25 |
| Credit One | 5% of balance or $25 (whichever is more) | $25 |
| Chase | 1% of balance or $25 (whichever is more) | $25 |
| Citibank | 1% of the balance for the billing period + any interest owed or 1.5% of the balance due (whichever is more) | $25 |
| Discover | 3% of balance + past due amount or $15 + new interest and late fees or $35 (whichever is more) | $20 |
| USAA | $15 + past due amount or 1% of statement balance + interest and fees or Overlimit amount (whichever is more) | $15 |
| Wells Fargo | 1% of balance or $25 (whichever is more) | $25 |
Note: Except where noted, the minimum payments listed above do not include past due amounts, late fees or interest, which issuers will add to your minimum payment if they apply.
What Happens If You Only Pay the Minimum Payment on Your Credit Card?
If you make at least your credit card’s minimum payment by the due date, you will avoid late fees and penalty APRs. However, any unpaid balance carried between months begins to accrue interest. Plus, not paying in full gets rid of the card’s grace period.
It can be tempting to just pay the minimum every month. But in the long run, it will cost more money and it could snowball into serious credit card debt if you’re spending more than you can pay off every month. It’s best to always pay your credit card balance in full, if possible.
You should also know that only amounts paid above the minimum are applied to the balance with the highest APR on the card, if you have multiple balances (e.g. purchases, balance transfers, cash advances).
Other Key Things to Know About Credit Card Minimum Payments Other Credit Card Minimum Payment Facts
How do you find out your minimum payment? You can find the minimum payment required by your credit card, along with the due date for that payment, on the monthly statement you receive by mail or email. You can also use WalletHub’s minimum payment calculator.
What happens if you fail to make at least the minimum payment? You will likely owe a late fee, though there’s a good chance the company might waive it if it’s your first time paying late and you ask them. Your issuer could also potentially apply a higher APR to future purchases and extend that APR to all balances if you are 60 days delinquent in making a minimum payment.
How do minimum payments impact your credit score? Paying only the minimum leaves you with credit card debt and a higher credit utilization ratio, which can be detrimental to your credit score. Paying in full will help your score increase much more quickly. But if you can only pay the minimum, paying on time is crucial for your score.
How can you avoid forgetting to make your minimum payments? Most credit card issuers allow you to set up automatic payments each month through your online account. You can choose to pay the minimum due or more.
Do you need to make a minimum payment if you have a 0% APR? Yes, if your card has a 0% APR on purchases or balance transfers, you will still need to make monthly minimum payments despite not accruing any interest.
Credit Card Minimum Payment FAQ(19 questions)
Most Popular
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Upvotes
Will I get charged with interest if I make the minimum credit card payment?
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9
WalletHub
@WalletHub
Yes, you will get charged with interest if you make the minimum credit card payment only. Paying the minimum amount required each month merely keeps your account in good standing, which saves you from credit score damage but not from interest charges.The only time you wouldn't owe interest on a balance that remains after paying the minimum is during a card's 0% introductory APR period.But without a 0% APR, you can only avoid interest if you pay off your entire balance in full by your due date.
Things to Know About Credit Card Minimum Payments
- A minimum payment is always required.
You must make the minimum payment every month or you'll be charged a penalty fee. But it doesn't protect you from interest. You owe interest on any balance you carry from month to month. - Your balance determines the minimum payment amount.
If your charges for the month are lower than the minimum payment, then the minimum payment becomes your full balance.But if you have a balance that carried over from a previous month, the normal minimum payment rules would apply. - You lose your grace period when you only make minimum payments.
Only paying off your balance in full by the due date will stop you from incurring interest charges. You'll need to do so two months in a row to regain yourgrace period, which prevents interest from accruing on new purchases until after the due date. - Interest is assessed daily if you make the minimum payment only.
There's a difference between your statement balance and current balance. Your statement balance is the full amount due, as of the end of your latest billing period. Your current balance includes purchases made since then. If you pay in full by the due date every month and your card has a grace period, interest won't apply to those most recent purchases. If not, they'll be assessed interest daily, along with the rest of your balance. - You have to make minimum payments on a 0% APR credit card.
If your card has a0% introductory APR, you won't owe any interest for a certain number of months. But you'll still have to make your minimum payment every month. If you don't, your issuer may end the 0% APR early and charge you at the regular rate.
If avoiding interest is your goal, choose your credit card wisely and strive to pay off your full balance every month. For more information, check out WalletHub's guides on how credit card interest worksand thecredit card payment timeline.
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Is it a good idea to set up autopay on a credit card?
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6
Maria Adams, Credit Cards Moderator
@m_adams
Yes, it is a good idea to set up autopay on a credit card, as this is the best way to make sure that you never miss a payment due date. Credit card autopay allows you to set up recurring, automatic payments for your credit card accounts. You'll typically be able to set up autopay on your credit card either through your online account or the issuer's mobile app.
It's worth noting that you can also pick the amount you'd like to...
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How do you find the minimum payment on a credit card?
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Evelyn Boros, Credit Cards Moderator
@evelyn_boros
You can find the minimum payment on a credit card by looking at your monthly statement. Additionally, you might find this information in your online banking account, or by calling the number on the back of your card.
The minimum payment is calculated differently by each issuer, but it's generally a fixed amount or a percentage of the cardholder's balance plus interest and fees, whichever is greater. For example, the minimum payment for a Chase credit card is...
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1
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How do I calculate my minimum payment on a credit card?
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1
Adam McCann, Financial Writer
@adam_mcan
You can see how the minimum payment on your credit card is calculated by looking at your monthly statement, which will list the minimum payment as well as the rules for determining it. A minimum payment is typically around 1% to 5% of your balance, depending on the issuer. Typically, you have to pay that percentage or a dollar amount of around $25 to $35, whichever is greater.
Once you know your minimum payment, you...
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1
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How do I calculate my monthly credit card payment?
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Adam McCann, Financial Writer
@adam_mcan
You can calculate your monthly credit card payment by multiplying the monthly interest rate by the outstanding balance. The monthly rate can be obtained by dividing your APR by 12 for the number of months in a year. The simplest way to do that is using a credit card calculator.
Keep in mind that your monthly credit card payment can be any amount between the minimum set by your issuer and your entire balance. You also...
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1
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How long would it take to pay off a $10,000 credit card balance if you only paid the minimum?
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Adam McCann, Financial Writer
@adam_mcan
It would take more than 26 years to pay off a $10,000 credit card balance if you only paid the minimum, assuming an interest rate of 15% and a minimum payment of 2% of the balance. The exact amount of time depends on how much your issuer's required minimum payment is and what your credit card's interest rate is.
For example, with an interest rate of 15% (around the average for existing credit card...
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What is the minimum payment on a 3,000 credit card balance?
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1
Chip Lupo, Credit Card Writer
@CLoop
The minimum payment on a $3,000 credit card balance is at least $30, plus any fees, interest, and past-due amounts, if applicable. If you were late making a payment for the previous billing period, the credit card company may also add a late fee on top of your standard minimum payment. The exact formula your credit card's issuer uses to calculate minimum payments is available in the card's terms and conditions.
Minimum Payment on...
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What is the minimum payment on a 2,000 credit card balance?
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1
Chip Lupo, Credit Card Writer
@CLoop
The minimum payment on a $2,000 credit card balance is at least $20, plus any fees, interest, and past-due amounts, if applicable. If you were late making a payment for the previous billing period, the credit card company may also add a late fee on top of your standard minimum payment. The exact formula your credit card's issuer uses to calculate minimum payments is available in the card's terms and conditions.
Minimum Payment on...
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What is the minimum payment on a 5,000 credit card balance?
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1
Chip Lupo, Credit Card Writer
@CLoop
The minimum payment on a $5,000 credit card balance is $50, plus any fees, interest, and past-due amounts, if applicable. If you were late making a payment for the previous billing period, the credit card company may also add a late fee on top of your standard minimum payment. The exact formula your credit card's issuer uses to calculate minimum payments is available in the card's terms and conditions.
Minimum Payment on a $5,000...
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What percentage of your credit card should you pay off?
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Chip Lupo, Credit Card Writer
@CLoop
You should pay off 100% of your credit card's statement balance by the due date every month to avoid interest charges and damage to your credit score. In addition, it's best for your credit score if your monthly statement balance is less than 30% of your credit limit, as this will give you healthy credit utilization.
If you can't pay in full each month, making at least the minimum payment, usually 1% to 3% of the card's balance,...
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