What is a minimum payment on a credit card?

A minimum payment on a credit card is the lowest amount you can pay each month to keep your account in good standing. In New York, the minimum payment is usually the greater of either 2% of your balance, or $20. For example, if your credit card balance is $100, your minimum payment would be $2 or $20, whichever is greater. You can also choose to pay more than the minimum payment if you wish to pay off your debt faster. If you make only the minimum payment, you will still have an outstanding balance on your credit card each month. This means that interest charges will continue to accumulate on the amount you owe. It is important to make larger payments when you can to pay off your credit card debt faster and save money on interest. Not meeting the minimum payment can result in added fees and interest. Additionally, it can also affect your credit score and potentially cause creditors to deny you future credit. It is important to make your minimum payment on time and in full each month to help maintain a good credit score.

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What is a minimum payment on a credit card?

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