Credit card min paymnet

superM

Hi, 
Which credit card company has a lowest rate of minimum payment like 1%.  I think majority has 2.25 to 3%.
Thanks 

MinuteNoodles

There is a law which sets the minimum amount a card company can set as a minimum payment which is 1% of the balance plus that month's interest, any defaults and annual fees as far as I recall. At 1% you would never pay any of the balance off unless it was 0% as in most cases you wouldn't even pay off that month's interest which is why it is not possible to set repayments that low.

If you're trying to find a credit card which has a lower than the legal minimum above you can't afford to run one.

SnowTiger

superM said:

Hi, 
Which credit card company has a lowest rate of minimum payment like 1%.  I think majority has 2.25 to 3%.
Thanks 

My Lloyds, Halifax, MBNA, Virgin and Santander credit cards have a minimum payment of 1% plus fees and interest.

LLoyds, Halifax and MBNA are part of the same banking group.

My MBNA and Virgin cards request a minimum payment of £25; unless the balance is less than that, then the minimum payment is whatever the balance on the account is.

Some of my cards are quite old.  New accounts may have different terms.  And, of course, card providers can amend T&Cs.

nick74

MBNA used to have a minimum payment of SnowTiger said:

superM said:

Hi, 
Which credit card company has a lowest rate of minimum payment like 1%.  I think majority has 2.25 to 3%.
Thanks 

My Lloyds, Halifax, MBNA, Virgin and Santander credit cards have a minimum payment of 1% plus fees and interest.

LLoyds, Halifax and MBNA are part of the same banking group.

My MBNA and Virgin cards request a minimum payment of £25; unless the balance is less than that, then the minimum payment is whatever the balance on the account is.

Some of my cards are quite old.  New accounts may have different terms.  And, of course, card providers can amend T&Cs.

MBNA used to be 1%, and I believe it still is for existing cardholders, but for new applications now they appear to have changed the minimum payment to 2.5% plus fees and interest.

Ebe_Scrooge

If you're asking this question then I'm tempted to say you shouldn't be getting a credit card - unless you're specifically looking at a 0% promotional rate.  Apart from a 0% card, only paying the minimum over a prolonged period will cost you a heck of a lot of interest, and take you forever to fully repay the debt.