What is a minimum payment on a credit card?

A minimum payment on a credit card is the minimum amount of money you are required to pay off your credit card balance each billing cycle. In Indiana, the minimum payment is typically determined by the credit card’s terms and conditions, and it may be a percentage of the balance, a flat fee, or a combination of both. For example, some credit card issuers will require a minimum payment equal to 2% of the balance, while others may have higher or lower requirements. The specific minimum payment outlined by your credit card issuer is important, as failing to make the required payment or only making the minimum payment can result in late fees, penalty fees, and higher interest rates. Additionally, only making the minimum payment can make it much harder to pay off your credit card balance and can lead to hundreds or thousands of dollars in interest charges. Therefore, making your minimum payment each month is important, but it is also important to make larger payments when you can. Doing so can reduce the balance faster and save you considerable money in the long run. Additionally, the Indiana Credit Services Act provides other protections, such as prohibiting creditors from requiring excessive payments or charging interest on unpaid balances for longer than 52 days.

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What is a minimum payment on a credit card?

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