How is the Minimum Payment calculated on a credit card?

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4 posts
eric555
 
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How is the Minimum Payment calculated on a credit card?

Postby eric555 » Thu Aug 15, 2013 5:40 pm

hey i'm just wondering how minimum payment works, I am super confused. stayed on the line with a rep from the bank for 30 minutes and still don't understand how they are calculated...

Is it [ balance + (interest rate x balance) x 2% ] ?? how does it work?


MemberSince99
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Postby MemberSince99 » Sat Aug 17, 2013 8:40 am

Why not just Google it?

I can't tell you because I am never fool enough to simply pay that minimum as it's designed to keep you in debt paying enormous interest for the rest of your life. Seems if you want an answer the formula should be available simply by using Google.

takeshi
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Postby takeshi » Sat Aug 17, 2013 8:47 am

Should be outlined in your terms. Example from the Sapphire's terms:
Minimum Payment: We will calculate the minimum payment as the larger of: 1) $25 (or total amount you owe if less than $25); or 2) the sum of 1% of the new balance, the periodicinterest charges, and late fees we have billed you on the statement for which your minimum payment is calculated.

MemberSince99
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Postby MemberSince99 » Sat Aug 17, 2013 12:02 pm

takeshi wrote:Should be outlined in your terms. Example from the Sapphire's terms:


Great answer too. Only problem is, I bet 90% of people throw that away without ever even reading it. I'm one of the weirdos who not only keeps it, I read it, or at least scan over it taking the key points. 98% of what is in there is in their favor, just like when you buy a car or rent a place.



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