promotion image of download ymail app
Promoted
Dawn asked in Business & FinanceCredit · 2 months ago

Credit Card Minimum?

So, let’s say I have a $1000 balance on my credit card and I can’t pay the full amount. Can I pay the minimum this month and pay the rest next month? Or how does that work? 

4 Answers

Relevance
  • A.J.
    Lv 7
    2 months ago

    First know the difference of each number. There is statement balance, current balance, minimum payment, received by date. When you pay the full amount of Statement Balance before the due date, there is no finance charge typically. Cash advances are a separate entity. When you pay at least the minimum, you pay the finance charge on the average daily balance from the times of purchase. The finance charges continue to accrue until balances and finance charges are paid off. It takes a month or two to clear the thing, because even paying statement balance next time still has finance charges rolling. It's harder to get back into the interest-free mode.

    Your credit rating is fine as long as you pay at least minimums by due date and don't charge over your credit limit. If you can't pay the full amount, you have no choice, but I believe you should pay it as soon as possible, even mid-cycle.

    Credit cards are for emergencies and rewards. Avoid using them to finance purchases.

    • Commenter avatarLog in to reply to the answers
  • Judy
    Lv 7
    2 months ago

    Yes you can just pay the minimum. You'll be charged interest

    • Commenter avatarLog in to reply to the answers
  • 2 months ago

    You just need to pay at least the minimum but whatever you don’t pay collects interest. The best thing is to pay off as much as you can so that you don’t pay more interest than you need to. That 1% monthly may not seem a lot but it adds up over time. See below. Pay $20 minimum and you pay $9.80 in interest. 

    Let’s say you owe 1000 and you pay off the minimum which I guess is $20 and your interest rate is 1% monthly. So you’ll pay 1% in interest on the $980 you owe. So next month, you’ll get a bill saying you owe $989.8 (980 + 9.8). 

    • Commenter avatarLog in to reply to the answers
  • Anonymous
    2 months ago

    Yes, you can pay the minimum or anything over that. Count on a bunch of interest being added on, of course.

    • Commenter avatarLog in to reply to the answers
Still have questions? Get answers by asking now.