The minimum due on a credit card is the smallest amount of money that you have to pay each month to keep your account in good standing. The minimum payment is usually calculated as a percentage of the outstanding balance or a set dollar amount, whichever is greater. The minimum payment is typically a small calculated amount of your balance or a fixed dollar value, usually between 1% and 3% of the outstanding balance on your credit card, and includes accrued interest and applicable fees. Credit card issuers tend to set minimum payment requirements at rock-bottom levels, often $25 or $35, which is the lowest minimum payment youll be required to pay. If you make only the minimum payment, youll end up paying far more than your original balance by the time you pay it off, and youll be in debt for much longer.

Its important to understand your credit card issuers minimum payment policies, as they vary from company to company. If youre experiencing a financial emergency, paying only the minimum for a few months can be a way to conserve cash in the short term, but as a long-term strategy, its a recipe for serious trouble. Paying less than the minimum on your credit cards can have serious consequences. Credit card issuers treat any credit card payment below the minimum as a missed payment, which can have negative effects on your credit score and credit history.

According to the Credit CARD Act of 2009, card issuers are legally required to include a "minimum payment warning" on each billing statement. This is often represented by a table that tells you the total time to pay off your balance and the total amount youll end up paying (including interest), if you only pay the minimum. The table shows how much money and how many years youll need to pay off your balance if you pay only the minimum each month. Youll significantly shorten that period just by paying more.

In summary, the minimum due on a credit card is the smallest amount of money that you have to pay each month to keep your account in good standing. Its important to understand your credit card issuers minimum payment policies, as they vary from company to company. Paying only the minimum can have serious consequences, including negative effects on your credit score and credit history.