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Why is it unwise to only make the minimum payment on your credit card?
Wiki User
∙ 11y ago
Making the minimum payment on a credit card will only pay on the interest. Say you owe $500 and the Minimum payment is $20. That will be applied mostly to the interest and when the next billing cycle comes you will more then likely still have an outstanding credit line of the $500. In modern times, credit card companies are charging about 19% (Give or take) on outstanding balances.
I would suggest that you always pay a little more than what the minimum shows.
Wiki User
∙ 14y ago
Wiki User
∙ 11y agobecause the bank will see it as a un-experienced credit card user and theyll send large mobs of thugs to beat you up and have fun time with your family. YOUR A BOY SCOUT. stop looking the answers up on the internet and use the book
Wiki User
∙ 12y agomimimum payment = maximum years of owning.
It results in the highest possible interest payments, in some cases it can almost double your debt!
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Why is it unwise to pay minimum payments on your credit card?
It is unwise to pay minimum payments due on credit cards because the payment will cover only a small portion of the principal amount and more on interest and financial charges.
Explain why it is unwise to make only the minimum payment on your credit card?
becuase your only paying the intrest you owe helping with merit bdge i hope ;)
Why is it unwise to make the minimum payment on your credit card?
Paying the minimum each month means you'll take longer to pay it off, meaning you're paying more interest.
Why is it unwise to pay minimum credit on your credit card?
Paying only the minimum due on your credit card balance maximizes the amount of interest you will pay to the credit card company. This is why it is better to pay as much of your balance as you can each billing cycle - it saves you money by reducing the amount of interest you pay. Also, depending on the terms of your credit card agreement, paying the minimum can actually make your principal balance increase. The minimum payment may not cover the amount of interest due.
What is the minimum monthly payment on credit cards?
reload credit card
Why is it unwise to pay minimum payments on your credit card?
It is unwise to pay minimum payments due on credit cards because the payment will cover only a small portion of the principal amount and more on interest and financial charges.
Explain why it is unwise to make only the minimum payment on your credit card?
becuase your only paying the intrest you owe helping with merit bdge i hope ;)
Why is it unwise to make the minimum payment on your credit card?
Paying the minimum each month means you'll take longer to pay it off, meaning you're paying more interest.
Why is it unwise to pay minimum credit on your credit card?
Paying only the minimum due on your credit card balance maximizes the amount of interest you will pay to the credit card company. This is why it is better to pay as much of your balance as you can each billing cycle - it saves you money by reducing the amount of interest you pay. Also, depending on the terms of your credit card agreement, paying the minimum can actually make your principal balance increase. The minimum payment may not cover the amount of interest due.
What is the minimum monthly payment on credit cards?
reload credit card
What is the minimum payment for a visa credit card?
2% or 20$.
Credit Card Minimum Payment Calculator?
Credit Card Minimum Payment Calculator Use this calculator to determine how long it will take you to payoff your credit cards if you only make the minimum payments. Enter your credit card information below and press "View Report" to see your payoff details.
What is the meaning of payment due date, minimum amount due, and last bill due in a credit card?
A payment due date is the day that a minimum payment is due on a credit card bill. The minimum amount due is the smallest amount of money that must be paid in order to avoid a late payment fee. The last bill due is the date of the previous month's credit card bill.
What are the minimum payments on a credit card?
Depends on how much you owe. The more you owe, the more the minimum payment.
What is Minimum Payment?
The smallest amount of a credit card bill that a consumer can pay, to remain in good standing with the credit card company.
Why is it unwise to only pay the minimum amount on a credit card?
Only paying the minimum amount (depending on how much you owe, your interest rate, and how your minimum payment is calculated) will take you years to pay off in which time it is most likely that you will have paid more in interest than you owed to begin with. For example, $5000 balance owed with an interested rate of 20%, with a credit card whose minimum payment is calculated: interest rate + 1% of balance, therefore a minimum payment of $133.33, will take you over 23 years to pay off and by that time you will have paid over $7,700 in interest alone!
If your credit card balance is 1150 and the minimum monthly payment is 3 percent what is the minimum amount you must pay?
$1150.00 X 3% = $34.50 minimum payment or $1150.00 X .03 = $34.50 minimum payment
