What is a minimum payment on a credit card?

A minimum payment on a credit card is the least amount of money that you must pay for your credit card balance each month. This amount is typically set by your credit card issuer and is usually a percentage of your total balance. In California, the minimum payment typically ranges from 1-4% of the total balance. The minimum payment requirement is one of the credit card laws in the state and can help credit card holders avoid late payments and finance charges. If the minimum payment is not met, the cardholder will incur a late payment fee. In addition, if the cardholder makes only the minimum payment, they may not be able to pay off their balance in full and may be charged additional finance charges. This can cause the cardholder to pay more in interest payments and also accumulate more debt. Therefore, it is important to make sure that the minimum payment is met each month to avoid finance charges and minimize debt.

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