Credit Card minimum payment

DebbieTheRabbit

I have just received a Marbles Classic credit card. I know the interest is extortionate but I am trying to improve/rebuild my credit history and it is the only card I can get.

I am trying to calculate what the minimum payments would be, but I must be doing it wrong because I'm making it out to be about £147 a month?

I have a credit limit of £300.00, interest rates are standard simple = 47.899%, Standard compound = 59.95%. I'm not sure what the difference is.

The minimum payment is 1% of the balance + interest for that month. If my balance was £300 what would the monthly payment be?

I should note I'm not planning on using the full amount of credit, I was just going to use it for the occasional small purchase and then pay off in full each month.

[Deleted User]

£3 plus interest of around £15 over a month, assuming a constant balance.

But always pay in full, never the minimum.

jay1804

Your minimum payment should be £5 if your balance on your statement close date is £300, because £5 is normally the minimum payment of any card

DebbieTheRabbit

I was taking the £300 balance and calculating the interest of 47.899% = £143.67 per month :mad:

How is it actually calculated on a monthly basis?

[Deleted User]

Interest is charged on a daily basis - so 1/365 of 60% every day

You were taking an annual rate and pretending it was a monthly rate.

YorkshireBoy

Deleted_User wrote: »

Interest is charged on a daily basis - so 1/365 of 60% every day

1/365 of the simple rate of 47.899% each day...isn't it?

It's still a big number though!


It's not relevant to the OP though because they've got a credit card to build/improve their credit rating, not to spend money they haven't got (put to one side to repay it).

Ben8282

DebbieTheRabbit wrote: »

I have just received a Marbles Classic credit card. I know the interest is extortionate but I am trying to improve/rebuild my credit history and it is the only card I can get.

I am trying to calculate what the minimum payments would be, but I must be doing it wrong because I'm making it out to be about £147 a month?

I have a credit limit of £300.00, interest rates are standard simple = 47.899%, Standard compound = 59.95%. I'm not sure what the difference is.

The minimum payment is 1% of the balance + interest for that month. If my balance was £300 what would the monthly payment be?

I should note I'm not planning on using the full amount of credit, I was just going to use it for the occasional small purchase and then pay off in full each month.

Then why are you so concerned about interest rates and minimum payments?
If you pay in full each month you won't pay interest and the minimum payment is irrelevant as you will be paying the full balance

LobsterMemory

Maybe they want to increase their knowledge or answer a question from a friend or work out why their answer was so skew-wiff

What on earth has it got to do with you/us why they want to know?