What is the minimum pay in credit card?

The minimum payment is the lowest amount you need to pay against your credit card bill by the due date. It is usually a small percentage of your total outstanding bill, typically 5-10%. The credit card company calculates the minimum payment you must make each month based on your current balance, new purchases, and any fees or charges related to your account. You may also use an online credit card calculator for quick results.

Making just the minimum payment helps you avoid late fees and negative reporting to credit bureaus. However, it does not help you become debt-free soon. When you make the minimum payment month after month, the interest keeps accruing on the remaining outstanding amount. This means you end up paying more interest charges over a long period of time.

To avoid incurring interest charges and expensive debt, make it a habit to pay more than just the minimum amount due. Try to pay the full statement balance every month. This will ensure you become debt-free faster and pay less interest. Maintaining good credit card habits is crucial for maintaining a healthy credit score.