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Why is it unwise to only pay the minimum amount on a credit card?
Wiki User
∙ 13y ago
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!
Wiki User
∙ 13y ago
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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.
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.
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.
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 ;)
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 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.
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.
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.
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 ;)
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.
What amount to pay on credit card to keep finance charge in control?
minimum
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.
Can merchants place a minimum amount on credit card purchases?
A merchant can & will require a minimum purchase amount in some cases. The credit card company charges the merchant for each transaction. If a purchase does not exceed the amount they are being charged from the cc company, they can decline to process your card. Most merchants have a sign explaining their policy.
Is there a minimum credit score to apply for an amex card?
You do not need a minimum credit score. You just need to be able to pay off the amount at the end of every month.
What is a balance transfer with regards to credit cards?
A balance transfer is when an amount owing on one credit card is transferred to another credit card. This is usually done to take advantage of lower interest charges. A credit card company usually specifies a minimum/maximum amount you can transfer.
Is paying the minimal on credit cards considered a sign of credit trouble?
Paying the minimum amount due on credit card is not necessarily a sign of credit trouble because it actually makes the credit card account current.
If your credit card balance is 1150 and the minimum monthly payment required is 3 percent What is the minimum amount you must pay this month?
34.50
