When comparing credit cards how is the minimum payment worked out and what happens if I only pay it?

27 Sept 2026, 05:57
Q A Reader Asker

When comparing credit cards how is the minimum payment worked out and what happens if I only pay it?

A PoundWise Team Answered by

A credit card’s minimum payment is usually a percentage of your balance, or a fixed amount plus interest and fees, whichever is higher; the exact formula is set out in the card’s terms. Paying only the minimum on time should keep the account from being classed as missed, but it can take much longer to clear the balance and cost more interest. When comparing cards, check the representative APR, minimum-payment formula, annual fees and any balance-transfer or purchase offers. Your statement will show the amount due and deadline, but contact the card provider if you are struggling to pay.

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