Is minimum payment related to the interest you are paying?

Cashew

Say your minimum payment on a blalance of £5000 is £100 and your card has an interest rate of 20%.

If your card has an interest rate of 0% would the minimum payment still be £100?

Are they linked in any way?

Thanks

Phantom_Flan_Flinger

Minimum payment is set out in the T&C's of the card when you signed up for it.
It's not dependent on your interest rate.

byebyedebt

well depends upon the card. About 10 years ago the minimum payment was typically 5%. About 20 yrs before that the minimum payments were around 10%.

Now some providers have even lower rates. Some are around 2% however, 2% on a higher interest card would mean that your balance would keep on rising after the payment was applied.

So now some cards, such as the Virgin Money (MBNA Card) and the HBOS Platinum say that the minimum is for example the greater of 2% or the interest charged, plus five pounds. So in these cases the minimum payment is affected by the rate of interest charged.

As I say, it depends upon the card, the interest charged and the min payment %.

Cashew were you looking at a particular card?

Cashew

Thanks.

Not looking at a particular card, just any I can get. Have just been turned down by a few. Virgin, Capital One etc.

angelicmary85

Don't apply for too many in a short space of time!

byebyedebt

hi Cashew, the MBNA Virgin Card and Capital One are not known as difficult cards to get. Do you have a lot of searches or are you carrying a lot of debt? If so, this will hamper you.

Cashew

Yes a fair bit of debt.

never-in-doubt

byebyedebt wrote: »

hi Cashew, the MBNA Virgin Card and Capital One are not known as difficult cards to get. Do you have a lot of searches or are you carrying a lot of debt? If so, this will hamper you.

They are difficult to get, Virgin are notoriously hard!

digitalphase

You could try Vanquis or Aqua? May be best leaving it a few months though if you can as too many searches isn't desirable - even for someone with an excellent credit history like my OH. He applied for Abbey and got no email or any acknowledgment so applied again (I told him off for this :D), still nothing. Applied for Tesco and another I think and got declined. Turned out Abbey accepted him the first time but too many searches led others to decline him.
Abbey are stupid for that :mad: