What is a Minimum Finance Charge on a credit card?

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What is a Minimum Finance Charge on a credit card?

Postby antidovish » Tue May 21, 2013 5:02 pm

What does it mean when a credit card application or statement says there is a "Minimum Finance Charge" on the account? I was comparing cards and see one that had a $1 listed, another said $2 and one said $0.50. Will you have to pay that charge every month no matter what?

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Postby MemberSince99 » Tue May 21, 2013 8:29 pm


What that means is, if you do not pay the full amount owed by the due date, thus leaving a balance, no matter how small that balance is, you will pay a minimum amount of interest for that. So say that you leave a one dollar balance and the interest amount is a few cents, you will still pay that 1 or 2 dollar or 50 cent minimum regardless if the actual balance is too small to require that amount.

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