The minimum payment is the lowest amount of money that you are required to pay on your credit card statement each month.
Paying more than the minimum can help you minimize interest costs, shorten your borrowing time, and improve your credit.
Formula to calculate credit card minimum payment.
If for instance, the outstanding balance is less than the minimum payment, you can do a full payment otherwise, you can use the formula below.
Example:
Calculate your credit card least payment if your outstanding balance is $ 400 and the least repayment rate is 3%.
Therefore, your minimum payment should be $ 12.
