Credit Card Forum
  1. #1
    frugalsam
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    Default What Is The Minimum Credit Card Payment Formula?

    Almost every online source I have consulted only talks about the outdated minimum credit card payment formula. Today it no longer a flat percentage of the balance right? Don't most banks now calculate the credit card minimum payment as 1% + finance charges per month or something along those lines?
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    Reply With Quote Reply With Quote     Dec 8, 10, 12:27 pm
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    infomaniac
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    The Federal Office Of Comptroller recommending in 2005 that a different minimum credit card payment formula be used which forces payment towards principle. Despite contrary popular belief the formula is not based on a flat percentage of total balance as some erroneously report.

    This is what makes up the formula that is most prevalent for 2011.
    • accrued interest during the billing period
    • applicable fees including but not limited to those for late payments and exceeding credit limit
    • 1% of the total balance
    Note that this payment formula for credit cards was only a recommendation and the issuer may use a different formula at their discretion.
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    Reply With Quote Reply With Quote     Dec 10, 10, 9:01 pm
  3. #3
    Cucumber
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    During the recession I think Chase was doing minimum payments of a flat 4% or 5% for some accounts, like the ones that had super sweet fixed rate for a life of balance deals.
    OBAMA
    Stop talking crap about him!
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    Reply With Quote Reply With Quote     Dec 19, 10, 3:09 pm
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