How is Minimum Payment due calculated?



Question: How is Minimum Payment due calculated?

Answer:  Each credit card issuers have their own set of calculation in determining your “Minimum Amount Due.”  The minimum payment due is usually about 2% to 3% of your credit card balance.

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If you miss a payment, you’ll have to pay the minimum due for every month missed plus late fee penalty.  Also, if you carry a credit card balance, there is no grace period.  You can the finance charge on your credit card balance.

For example, if you have a credit card balance of $1,000.  Your minimum payment due for the month will likely be around $20 to $30 depending on the credit card issuer.

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