How to work out minimum payment?

tenmah

Can anyone tell me how you work out the minimum payment on a credit card please?

I know Barclaycard is 3% or £5, whichever is the highest amount. Is this the same on for all cards or does it depend on the card?

My credit card is the Virgin Credit Card on a 0% interest, if that is of any relevance.

Thanks!

jonesMUFCforever

It will depend on the card.
The safest way to make sure you don't miss a payment is to set up a direct debit for the minimum payment.

Your Virgin credit card statement should show your minimum payment.

YorkshireBoy

tenmah wrote: »

My credit card is the Virgin Credit Card on a 0% interest, if that is of any relevance.

If you check your summary box/T&C's you'll see something along the following lines...

The minimum payment is the LESSER of

3% of the balance

or

The sum of 'interest + fees + ppi + charges'

Providing it will always be at least £25 (except where the balance is less than £25 in which case it will be the balance in full).

So, if you've only used the card for a BT (ie NOT for purchases or cash advances), you'll pay around 3% in the first month followed by £25 per month from month 2 onwards.

Make sense?

tenmah

Thank you both for your replies.

I do have a direct debit set up for the minimum payment, but just trying to budget for the month, so needed to know how much it was likely to be.

Thanks again

dylanuk

The Virgin credit card has a minimum monthly repayment amount of 3% or a £25 minimum (unless your balance is zero), all the details here: http://www.credit-card-comparison-online.co.uk/virgin/money.asp

bigbloke45

YorkshireBoy is rght, you've got an MBNA card and this is what they do.

Best thing is to 'phone them and ask how much the first payment is; you can also set up an on-line account with them.

Lastly, be very careful about the final balance repayment date; if you go one day over you will be hit for interest. Ask them over the 'phone what is the date that the BT needs to be repaid, if you forget, keep 'phoning, they don't mind.

Well, really "lastly" when you repay them, make sure you give yourself enough time. Any cheques, on-line payments etc. must be CLEARED by your due date!

Apart from all this, it works really well. I've just finished a BT with MBNA!