What happens if you only pay the minimum balance owed each month on a credit card?

+1 vote
asked Jan 25, 2018 in Other-Finance by Vallorz (250 points)
What happens if you only pay the minimum balance owed each month on a credit card?

1 Answer

0 votes
answered Jan 25, 2018 by Judy (56,120 points)
Your credit card company that you have your credit card through should have a minimum payment you must make to pay off the balance owed to them.

If you make only the minimum payment you're basically just covering the interest amount and you'll still owe the balance on the card.

It's better to pay a little over the minimum payment to help get the credit card balance paid down which will help improve your credit score.

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