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How does credit card minimum payment work?


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Answered 2007-10-02 07:26:17

One can pay the minimum balance, usually a fraction or percentage of the total amount owed. As long as you meet this minimum amount faithfully, the credit card company will absolutely love you to bits. You see, by paying the minimum, you are only filling the pockets of the corporation that issued the card - your balance, if pretty high, could take up to 20 years to pay off by just making the min payment.

Best advice on CC's - pay the entire bill when it becomes due ... protect your good credit rating, and build better credit history, too.

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