How is minimum credit card repayment calculated?

alextrag

Hello,

Just wondering if anyone can help, was thinking of applying for a credit card, but was wondering how they calculate the minimum repayments each month?

Any advice will be appreciated!

Alex

[Deleted User]

Usually 1% of balance, plus fees and interest.

However, it can be higher and may also have minimum value - eg £25, or 2,5% of balance.

Helvetica_Van_Buren

It's a percentage of the the balance on a certain date.

The percentage changes between card issuers: some might charge 2.5%, others 1.5%.

If you had a balance of £1,000.00 on the date your statement was produced (the 25th of every month, for example) and your minimum payment was 2.5%, the minimum payment for that month would be £25.00.

Ebe_Scrooge

As per the previous replies it's calculated on a percentage of outstanding balance, plus fees and interest. They will all have different percentages, it will tell you clearly on the application form ( and the monthly statement ) what this is. Most will also have a minimum amount - something along the lines of "1% of the outstanding balance, or £5, whichever is the greater".

grumbler

Every CC has a "Summary Box" (on the website and in all statements) explaining this among other things.