Do you need to learn how to figure out a credit card minimum payment? If you've misplaced your credit card bill, it's important to find out how much you need to pay. It's important to understand what your minimum payment is, and to pay it each month to avoid incurring late fees. This figure will vary depending on your credit card company and your balance, but with a little investigating and math, it is possible for you to figure this out. So if you want to find out how to figure out a credit card minimum payment, read on.
Find the percentage rate indicated on the documentation you receive on each bill. This varies from company to company. Some companies charge 1% of your balance, others 2%, and others as much as 3%. As well as being listed on your bills, your percentage rate your credit card company uses check the fine print on the document you got when you filled out the application as well as the one that was mailed to you when you received your card. If you misplaced these documents it's okay! There is a number on the back of your credit card that you can call. Just ask the representative what their "minimum payment formula" is, and they will be able to help you.
Convert the percentage to a decimal, then multiply it by your balance. To convert a single digit percentage, put a decimal point, then a zero, and then the number. For example, 1% = .01 and 2% =.02. Multiply this number by your current balance. For example, if you owe $1583, and you multiply it by .03, you'll find that your minimum monthly payment is $47.49. Just use a calculator to make the multiplication easy.
Look up your "minimum monthly payment." If you find that your payment is under $20, check to see if your credit card company has a minimum payment that exceeds it. This is because they don't want a check for $1.60 if your balance is $16, ha ha. Many credit cards have a minimum that you have to pay each month. This could be $5 or $15, but the only way to know for sure is to check the fine print or call the number on the back of your credit card. Just ask the customer service representative "what is my minimum monthly payment," and they will help you from there. And that's all you need to do to determine the minimum monthly payment for your credit card. Good luck!
Tips & Warnings
• Remember to add in any late fees, finance charges, and interest rates to your spending balance. The percentage rate will be based on this total balance.