Guide To Credit Card Minimum Payments Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure

Advertiser Disclosure

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE:

On This Page

Igor Alecsander/Getty Images May 25, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Mariah Ackary is a personal finance editor who joined the Bankrate team in 2019, excited by the opportunity to help people make good financial decisions. Send your questions to Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo

The Bankrate promise

At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo

Editorial integrity

Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.

Key Principles

We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.

Editorial Independence

Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo

How we make money

You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. How much do you put towards your credit card bill every month? Some people try to pay their balance off in full, while others put as much towards their credit card bill as they can afford. However, it’s important to always make the minimum payment on your credit card—no matter what else you’re dealing with financially. What is a minimum payment? Simply put, it’s the lowest amount of money you can pay your credit card issuers every month without credit score damage. You can make only the minimum payment every month and still remain in good standing with your creditors. However, if you only make the minimum payment on your credit cards, it will take you much longer to pay off your balances—sometimes by a factor of several years—and your credit card issuers will continue to charge you interest until your balance is paid in full.

What is the minimum payment on a credit card

A credit card minimum payment is the lowest amount you can pay every month while keeping your account in good standing. Making at least the minimum payment on your credit cards every billing cycle ensures that you do not get stuck with , or derogatory marks on your credit report. While it’s a good idea to every month—especially because your credit card issuer will charge interest on any balance remaining after you make your credit card minimum payment—making at least the minimum payment on your credit cards is one of the best things you can do to maintain a positive credit history.

How is a minimum payment on a credit card calculated

A credit card minimum payment is usually calculated as a flat percentage of your total balance, although some credit card issuers may add new interest, fees and/or past due amounts to your minimum payment. To find out how your minimum payment is calculated, check your credit card’s terms and conditions. If you have the , for example, your minimum payment will be either $25 or 1 percent of your balance (whichever is greater), plus new interest, late payment fees and any past due amounts. Not all credit issuers include credit card minimum payment calculators in their list of rates and terms. If you are not sure how your credit card minimum payment is calculated, contact your credit card issuer and ask “How much will my minimum credit card payment be?”

What happens if I don t make the minimum payment on my credit card

Paying less than the minimum on your credit cards can have serious consequences. Credit card issuers treat any credit card payment below the minimum as a missed payment, which can have negative effects on your credit score and credit history. If you don’t make the minimum payment on your credit card, your missed payment will be reported to the : Equifax, Experian and TransUnion. The missed payment will appear as a derogatory mark on your credit history, and the negative mark could remain on your credit reports for seven years. However, that doesn’t mean you should skip credit card payments when you can’t afford the minimum payment charge. Continuing to make payments on your credit cards even when you can’t afford to pay the minimum shows the credit card companies that you have not given up on paying back your debt—which can help you when it comes time to or .

How does missing a minimum payment affect my credit score

Not making a credit card minimum payment can have a serious negative effect on your credit score. Your payment history makes up 35 percent of your FICO credit score and 40 percent of your VantageScore 3.0 credit score. The VantageScore 4.0 credit score, which uses trended data to track credit behaviors over time, lists payment history as “moderately influential” in determining your credit score. Making on-time credit card payments is one of the most important parts of , and missing payments—or paying less than the minimum—is one of the quickest ways to damage your credit. Try to make at least the minimum payment on your credit card every month, and try to pay more than the minimum whenever you can.

Why you should pay more than the minimum

Making a credit card minimum payment may seem like a good idea, but it’s an even better idea to pay more than the minimum on your credit cards. Why? Because when you carry a balance on your credit cards, your credit card issuer will charge interest on your debt—and when you only make the minimum payment on your credit cards, those interest charges can quickly add up. Want to know exactly how much money it’ll cost you if you only make the minimum payment on your credit cards? Thanks to the , your credit card issuers are required to tell you. Check your monthly for a box labeled “Minimum Payment Warning.” This box will tell you how long it will take you to pay off your debt if you only make the minimum payment on your credit cards, as well as how much money you’ll pay in total—an amount that will probably be significantly higher than your current credit card balance. Here’s a quick overview of how long it can take to pay off a balance if you only make the minimum payment on your credit cards every month—and how much interest can accrue over time. In this example, you’re paying off a credit card with a $1,000 balance and a 17 percent interest rate, in which the minimum payment is calculated at 1 percent of the balance plus new interest. Month Minimum Payment Interest Paid Principal Paid Remaining Balance 1 $24.17 $14.17 $10.00 $990.00 2 $23.92 $14.02 $9.90 $980.10 3 $23.69 $13.88 $9.81 $970.30 4 $23.45 $13.75 $9.70 $960.59 5 $23.21 $13.61 $9.60 $950.99 6 $22.98 $13.47 $9.51 $941.48 7 $22.75 $13.34 $9.41 $932.07 8 $22.53 $13.20 $9.33 $922.75 9 $22.30 $13.07 $9.23 $913.52 10 $22.08 $12.94 $9.14 $904.38 11 $21.86 $12.81 $9.05 $895.33 12 $21.64 $12.68 $8.96 $886.37 At the end of your first year you’ll have made $274.58 in payments while only reducing your $1,000 balance by $113.63. If you continued to only make the minimum payment, it would take you over nine years to pay off your debt—during which time you’d pay $857.52 in interest charges.

Tips for making your minimum payment

If you need help making a credit card minimum payment, you have a few options. Start by taking a look at your and finding ways to cut back on your spending. Canceling a few streaming services or cutting back on takeout meals, for example, could help you set aside enough money for your credit card minimum payments. If there isn’t any wiggle room in your budget, it might be time to look for ways to earn more money. Whether you’re checking out the , looking into or updating your resume before applying for a new job, bringing in extra cash is one of the best ways to tackle your extra credit card debt. If you’re still coming up short, you can always contact your credit card issuer and ask them to reduce your minimum payment. Credit card companies have designed to help people who are going through periods of financial difficulty, so take advantage of any assistance your issuer can offer.

The bottom line

Making the minimum payment on your credit cards will help you stay current with your credit card issuers, which is why it’s important to make at least the minimum payment on your credit cards every month. However, it’s a good idea to make more than the minimum payment on your credit cards whenever possible. Otherwise, you could end up paying a lot of extra money in interest—and you might stay in debt for much longer than you realize. SHARE: Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Mariah Ackary is a personal finance editor who joined the Bankrate team in 2019, excited by the opportunity to help people make good financial decisions. Send your questions to Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer.

Related Articles