What is a minimum payment on a credit card?

A minimum payment on a credit card in Delaware is the lowest amount a credit card holder must pay each month to remain in good standing. The exact minimum payment amount is determined by the credit card company and typically depends on the outstanding balance. Generally, the minimum payment is a small fraction of the total balance, normally around 1-2 percent. The credit card company will also typically set a limit for the minimum payment, such as no less than $50. If the minimum payment calculated for the particular month is lower than this set limit, the card holder must meet the minimum payment set by the company. This is in direct correlation to Delaware’s credit card law which states the card holder must meet the minimum payment each and every month to avoid fees and penalties which can hurt credit scores. It is important to note that the minimum payment is not the same as a full payment. Paying just the minimum payment due won’t reduce your balance due. To avoid credit card debt it is important to pay more than the minimum payment each month. If possible, try to pay off the entire balance due. When a balance is consistently carried past the due date interest can quickly accumulate and lead to a debt spiral.

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What is a minimum payment on a credit card?

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