What happens if you only pay the minimum payment on your credit card?

+1 vote
asked Jan 25, 2018 in Credit by Muktuk (320 points)
What happens if you only pay the minimum payment on your credit card?

1 Answer

0 votes
answered Jan 25, 2018 by Adf289 (61,630 points)
If you only pay the minimum payment on your credit card balance then it will just take longer to pay back the amount you used on the credit card and you'll pay more in interest.

Paying the minimum is better than paying nothing but it would benefit you more and improve your credit score if you pay more than the minimum payment.

If you can pay more than the minimum payment each month then do so as you'll pay less interest and get your balance paid down sooner.

Your credit will also improve as it shows you're paying back your credit cards.

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