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Credit Card payments

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Hi All,
I hope you are well.

If I pay the more than the minimum will my minimum go up next month? or down? My CC is 1% of the balance and 19% APR.

Comments

  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,945 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 24 January 2023 at 1:24PM
    Your minimum is always the same calculation each month - eg 1% plus fees and interest. It all depends on your balance.
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Assuming you make no more transactions on the card then next month's minimum payment will go down.  Until you get close to paying it off in full - most cards have a minimum of "x% or £5, whichever is the greater".
    Though you really should be aiming to repay in full every month, both for the sake of your credit history and to avoid paying interest.
  • Martico
    Martico Posts: 1,169 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Although if your minimum spend is only 1% and the APR is 19%, then your interest charge will exceed the monthly minimum and the balance (and future min payments) will continue to rise.
    Pay as much as you can over the minimum amount, preferably clear the thing. Otherwise as Ebe says, you'll continue paying interest. Aim to clear it as fast as you can.
  • eskbanker
    eskbanker Posts: 37,182 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Martico said:
    Although if your minimum spend is only 1% and the APR is 19%, then your interest charge will exceed the monthly minimum and the balance (and future min payments) will continue to rise.
    Minimum repayments must reduce the monthly balance (excluding any new spend), as they're required to be at least 1% of the balance plus interest and fees, as per https://www.handbook.fca.org.uk/handbook/CONC/6/7.html
    firm must set the minimum required repayment under a regulated credit agreement for a credit card or a store card at an amount equal to at least that amount which repays the interest, fees and charges that have been applied to the customer's account, plus one percentage of the amount outstanding.
  • Martico
    Martico Posts: 1,169 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Thanks for the correction!
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