tickComparing UK 0% credit cards online since 2002
tickEvery 0% credit card currently available online
tick0% credit card deals and offers are updated daily

Credit Card Minimum Payment?

What is a credit card minimum payment? How much is a typical minimum credit card payment in the UK, in 2021?

Both of the above questions, are ones that we have seen many UK credit card customers looking for answers on recently.

Minimum Credit Card Payment

Credit card Minimum Payment

What is the minimum credit card payment on a 0% credit card?

A credit card minimum payment is the smallest amount that a customer must make, as a payment to the card company, each and every month.

A customer does need to make at least the minimum payment on time, every month. If they do not, then the credit card company may add a late payment fee onto the customers outstanding balance.

Minimum Payment On Credit Card

A customers minimum payment will vary depending on how much the customer has outstanding on their card. This amount will also vary depending on the minimum payment terms, set by the card company.

The law regarding credit card payments, was changed several years ago. Now, for all UK credit card companies, the minimum monthly payment must be at least equal to any default charges and interest due on the customer’s statement, plus 1% of the remaining balance.

To better illustrate credit card minimum payments, consider the following example. Do bear in mind that the minimum payment terms do vary from card to card.

  • Mr Jones pays interest of 19.9% APR on his credit card and has a current outstanding balance of £3000
  • As a result, Mr Jones will have to make a minimum payment of :-
    • Monthly interest due on the £3000 balance = £49.50
    • 1% repayment of the £3000 balance = £30
    • Total minimum payment = £79.50

This minimum payment amount will then reduce each month as the outstanding balance due on the customer’s card reduces.

Minimum Card Payment – Be Aware

If you only make the minimum payment each month, then the time taken to clear the outstanding balance is much longer. As a result you will pay a much higher amount in interest charges.

In the example above, of an outstanding £3000 credit card balance and only making the minimum payments each month, it would take 27 years and 8 months to clear and cost you £4,376 in interest, over the years.

As a result, we would strongly recommend that you never just make the minimum payment, month after month.

Minimum Payment On 0% Credit Card

Transferring any outstanding balance to a new 0% interest credit card which has a 0% introductory balance transfer can save a customer money. This will reduce the time taken to pay off the balance and also reduce the amount paid in interest.

0% balance transfer cards charge no interest during the 0% promotional balance transfer period. As a result, all payments made by the customer reduce the outstanding balance. So your level of debt does reduce faster during the period you pay no interest.

The following popular featured credit cards all offer 0% balance transfer deals:-


0% Credit Card Expert may receive commissions from some of the credit card companies that we refer users to. How this site works.

0% Credit Card Offers

Balance Transfers:
0% for 29 months
Balance Transfer Fee:
2.75%
Purchases:
0% for 3 months
Representative APR:
21.9% APR (variable)

Credit Card Details

HSBC Balance Transfer*
  • 0% interest for 29 months on balance transfers made within first 60 days of account opening
  • 2.75% balance transfer fee applies (minimum £5)
  • 0% interest on purchases for 3 months from account opening
  • At end of promotional period, balance transfers and purchases will revert to standard variable rate
  • Worldwide offers and discounts with HSBC home&Away
  • Manage your card online
  • Annual Fee: None

Application Criteria

HSBC Balance Transfer*
  • You have an annual income or pension before tax of £6,800 or more
  • You are a UK resident
  • You are aged 18 or over
  • You do not hold an HSBC Basic bank account
Representative Example: 21.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 21.9% p.a. (variable)
Credit is subject to status, affordability and applicable terms and conditions

0% Credit Card Offers

Balance Transfers:
0% for 29 months
Balance Transfer Fee:
2.75%
Purchases:
0% for 3 months
Representative APR:
21.9% APR (variable)

Credit Card Details

M&S Transfer Plus*
  • 0% for 29 months on balance transfers made within 90 days of account opening
  • 2.75% balance transfer fee, minimum £5
  • 0% on purchases for 3 months from account opening
  • Collect M&S points every time you shop anywhere in the world with your card
  • One point for every £1 you spend in M&S and one point for every £5 you spend elsewhere
  • Manage account online
  • Annual Fee: None

Application Criteria

M&S Transfer Plus*
  • You are a UK resident
  • You have an annual income or pension of at least £6,800
  • You are aged 18 or over
  • You have not held a credit card with M&S Bank within the previous 12 months
Representative Example: 21.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 21.9% p.a. (variable)

0% Credit Card Offers

Balance Transfers:
0% for 20 months
Balance Transfer Fee:
0%
Purchases:
N/A
Representative APR:
21.9% APR (variable)

Credit Card Details

HSBC Balance Transfer No Fee*
  • 0% interest for 20 months on balance transfers made within first 60 days of account opening
  • No balance transfer fee applies
  • No purchases offer with this card
  • At end of promotional period, balance transfers and purchases will revert to standard variable rate
  • Contactless payments to quickly and securely pay for purchases under £45
  • Manage your card online
  • Annual Fee: None

Application Criteria

HSBC Balance Transfer No Fee*
  • You have an annual income or pension before tax of £6,800 or more
  • You are a UK resident
  • You are aged 18 or over
  • You have not held a credit card with HSBC Bank in the last 6 months
No Balance Transfer Fee
Representative Example: 21.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 21.9% p.a. (variable)
Credit is subject to status, affordability and applicable terms and conditions

0% Credit Card Offers

Balance Transfers:
0% for 22 months
Balance Transfer Fee:
2.9%
Purchases:
0% for 22 months
Representative APR:
21.9% APR (variable)

Credit Card Details

M&S Shopping Plus*
  • 0% for 22 months on balance transfers made within 90 days of account opening
  • 2.9% balance transfer fee, minimum £5
  • 0% on purchases for 22 months from account opening
  • Collect M&S points every time you shop anywhere in the world with your card
  • One point for every £1 you spend in M&S and one point for every £5 you spend elsewhere
  • Manage account online
  • Annual Fee: None

Application Criteria

M&S Shopping Plus*
  • You are a UK resident
  • You have an annual income or pension of at least £6,800
  • You are aged 18 or over
  • You have not held a credit card with M&S Bank within the previous 12 months
Representative Example: 21.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 21.9% p.a. (variable)

0% Credit Card Offers

Balance Transfers:
0% for 24 months
Balance Transfer Fee:
3%
Purchases:
0% for 4 months
Representative APR:
20.6% APR (variable)

Credit Card Details

Co-operative Bank Balance Transfer
  • 0% interest for 24 months for balance transfers made within 60 days
  • 3% balance transfer fee, minimum £5
  • 0% interest on purchases for 4 months from account opening
  • All successful applicants will receive this exact rate and offer
  • Online account management
  • Annual Fee: None

Application Criteria

Co-operative Bank Balance Transfer
  • Only available to customers who have held a Co-operative Bank or smile current account for 1 month or more
  • You are a UK resident
  • You have annual income of £10,000 or more
  • You are aged 18 or over
Only available to Co-operative Bank customers
Representative Example: 20.6% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 20.6% p.a. (variable)

Making a fixed payment every month, £100 for example, instead of the minimum payment will greatly reduce the time taken to pay off your balance. This will also greatly reduce the amount paid in interest, if and when any monthly interest payments become due.

Typical Minimum Payment

The minimum payment on a 0% credit card does vary depending on which card company the payment is being made to. This is due to the British credit card companies having different terms and conditions for their cards and customers.

Here are some of the main minimum credit card payment terms:-

  • Barclaycard minimum payment
    • The greater of 2.25% of your balance, 1% of your balance plus interest and charges, or £5
  • HSBC minimum payment
    • The greater of 2.5% of your balance, or 1% of your balance plus interest and charges, or £5
  • MBNA minimum payment
    • The greater of 1% of your balance plus interest and charges, or £25
  • Santander minimum payment
    • The greater of 1% your balance plus interest and charges, or £5
  • Tesco minimum payment
    • The greater of 2x the monthly interest and charges, or 1% of your balance plus interest and charges, or £25


Related Content From 0% Credit Card Expert:-


Published: September 22, 2021, Updated: October 11, 2021 by 0% Credit Card Expert

All 0% credit card deals and offers on this website are updated daily