What is the minimum monthly payment on a credit card?

The minimum monthly payment for a credit card in Maryland is determined by the credit card company. Generally, the minimum payment is a percentage of the balance due, which usually ranges from 2% to 4%. The minimum payment also typically includes any interest and fees owed for that month. Alternatively, the credit card holder can set up their own minimum payment, as long as the amount is at least the full minimum payment amount as determined by the credit card company. The minimum payment may also increase if the balance increases or when any new charges or fees are added to the balance. If the minimum payment is not paid by the due date, late fees or other penalties will likely be applied. To avoid late fees and maximize interest payments, it is best to pay the entire balance due, if able. It is important to remember that the minimum payment is just that – the minimum amount required by the credit card company. Therefore, it is highly recommended to pay more than the minimum payment, if possible. By paying more than the minimum, the balance will decrease faster, and thus less interest and fees will be owed.

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