What is the minimum payment on a credit card and is it recommended? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is the minimum payment on a credit card and is it recommended?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

The minimum payment is a percentage (often 5%) of the total statement balance that must be paid in order to avoid the late payment fee.

Paying only the minimum is not recommended, because the bank will charge compounding monthly interest on the remaining balance.

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