What Happens if I Pay Only the Minimum Amount Due on My Credit Card Bill?


Two numbers stand out when you get your credit card bill at the end of your monthly period. The first is the total sum owed, while the second is the minimum payment that you must make. 

Ideally, you must pay the credit card bill online for the full sum owed. But, if you find it tough to pay off your credit cards each month, credit card companies want you to pay the bare minimum sum. Firms need this in order to keep your account open. So, let’s go into the facts of what this minimum credit card payment is and if it benefits or harms you.

What is a Minimum Credit Card Payment?

The minimum sum due on your credit card is the sum you must pay the credit card bill online by the due date. It is a small portion of the outstanding balance each month. The minimum payable sum is normally 5% of the entire due amount on your credit card. However, it could be more if –

  • You used your credit card to make an EMI payment.
  • You went above your credit limit.
  • You have not paid off your prior month’s dues. The unpaid sum will be added to the present amount. 

What are the Benefits of Just Paying the Bare Minimum?

Paying simply the bare minimum provides the following advantages:

  • It assists you in avoiding a late payment cost.
  • Allows you to better handle your money, notably during a financial crisis.
  • Handles your account without the credit card companies reporting it as unusual.
  • It has no effect on your credit score

Why is Paying the Minimum Due on a Credit Card Not a Smart Idea?

If you feel that paying merely the minimum due each month will help you pay off your credit card debt, you are mistaken. Paying the minimum required payments will lower the sum owed for the current month. Yet if you carry on making minimum payments, your debt will be far from paid off.

Even if you opt not to make any further purchases until you have paid off your debt, if you merely make the minimum payments, your debt will not be reduced. Instead, it will rise. This is due to the fact that the credit card is a revolving loan. Every day, interest is charged to your outstanding balance. You might quickly and unwittingly get into a debt trap if your funds are not well managed.

How Do Minimum Credit Card Payments Work?

A minimum payment is a minimal sum that you must pay towards your credit card each month on your credit card debt. To be deemed “on time” and prevent late fees and other fines, you must pay at least this sum. Certain lenders may even raise your interest rate if you make a late payment.

Your minimum payment is usually set as a percentage of the due debt or as a fixed monetary sum. It is normally between 1% and 3% of the existing amount on your credit card and covers any fees and interest. 

In general, if your entire debt is affordable, you must pay the credit card bill online in full to prevent the accumulation of interest. It’s vital to know your credit card company’s minimum payment rules since they differ.

Is it Okay to Keep Paying the Minimum Due Every Month?

It is critical to pay at least the minimum amount due each month to keep your card active. However, it means you will have to pay high interest charges, and there will be no interest-free credit period.

Credit card debts are expensive, and you must pay the credit card bill online in full each month. For times when there’s a financial contingency or cash crisis, you can just pay the minimum due that month. It will prevent late payment charges and your credit score from being adversely affected. Just make sure this is a short-term arrangement and not a habit.

Reduce your spending and apply the excess money to your credit cards in case of a constant cash crunch. You might also look for other ways to boost your income, such as working part-time or seeking freelancing jobs.

Applying for an online repayment plan can also assist you in selecting which credit cards to actively pay off first. The avalanche strategy, for example, directs your focus to the banks with the greatest lending rates. You may also use the “snowball” strategy, which suggests starting with the card with the lowest credit.

If money is tight and you are having trouble making minimum payments, contact your credit card company to explain your situation. They may give you a payment plan, like converting it into EMIs, if you’re having money issues.

Credit counseling is another option for people experiencing trouble making payments after applying for a credit card online. Non-profit groups that educate you on good money management skills often give this service for free. They may also assist you in building a debt management strategy to pay the credit card bill online


Credit cards offer great rewards and perks. They are one of the finest financial tools to get rapid access to finances, but only when used wisely. Many banks provide different sorts of credit cards. Each comes with its own set of rewards and bonuses based on your particular needs. 

If possible, paying more than the minimum payment on your credit card may save you a lot of money in interest and help safeguard your credit rating. Even better, settling your debt in full will assist you in avoiding paying any interest and maintaining a low usage ratio. 

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