What is a minimum payment on a credit card?

A minimum payment on a credit card is the lowest amount you must pay in order to avoid late fees and penalties. In Maryland, the minimum payment on a credit card is generally the greater of 1.5 percent of the total balance or $15. For example, if you have a credit card balance of $200, the minimum payment would be $3 (1.5% of $200). It is important to remember that making only the minimum payment will not help you pay off your credit card balance in a timely manner. When you make only the required minimum payments, it will take you longer to pay off your balance in full and the total amount of interest and fees you will pay will be higher. To pay off your balance more quickly and reduce overall costs, you should pay more than the minimum payment each month. If you are having difficulty making payments on your credit card, you should contact your lender to discuss your options. Depending on your situation, the lender may be able to reduce the amount of your monthly payment or offer other payment plans that will make it easier to stay current on your credit card payments. Additionally, you should also review your credit reports to make sure that all of the information reported is accurate and up to date.

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What is a minimum payment on a credit card?

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