However, it can be higher if there is any EMI or unpaid minimum amount from the previous billing cycle. Typically it is 5% of the total outstanding balance on the bill generation date. The credit card minimum amount due is a small portion of the total outstanding bill that you must repay to your credit card issuer to keep your account in good standing. You Could End Up Paying for a Long Time.Your Credit Score Will Eventually Take a Hit.Let’s break it down further as to why you should avoid making a minimum payment. Since you are paying interest and the minimum amount due over and over again, you get trapped in revolving debt. Many of them are unaware that, even though their credit score doesn’t take a hit and there’s no late payment fee, interest is still charged on the remaining bill amount every month, and every additional spend will accrue interest as well. Revolving debt is when a credit card user keeps paying the minimum payment every month instead of paying the bill in full. Paying just the minimum payment can honeytrap you into the vicious cycle of revolving debt. It’s 5% of your total amount due.įor example, if your total credit card bill is Rs 30,000, your minimum payment or minimum amount becomes Rs 1500, which you have to pay by the due date to stop your credit score from taking a hit and to avoid late payment charges on your bill. The minimum amount due is the minimum amount that you are required to pay against your credit card bill by the due date.
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