Credit Card Minimum Payment?

What is a credit card minimum payment? How much is a typical credit card minimum payment?

Here at 0% Credit Card Expert both of the above questions are ones that we have seen many UK credit card customers looking for answers on, over recent months.

Credit Card Minimum Payment

What is a credit card minimum payment?Credit card Minimum Payment

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

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

Credit Card Minimum Payment

How much is a credit card minimum payment?

A customers credit card minimum payment will vary depending on how much the customer has outstanding on their credit card and will also vary depending on the minimum payment terms of the credit card company.

The law was changed several years ago and now, for all 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.

As an example

  • Mr Jones pays interest of 18.9% APR on his credit card and has a current outstanding balance of £3000
  • Mr Jones will then have to make a credit card minimum payment of :-
    • Monthly interest due on the £3000 balance = £47.25
    • 1% repayment of the £3000 balance = £30
    • Total minimum payment = £77.25

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

Be Aware of Credit Card Minimum Payments

If you only make the minimum payment each month, then the time taken to clear the outstanding balance is greatly increased and you will pay much, much more in interest.

In the example above of a £3000 credit card balance and only making the minimum payments each month, it would take 27 years and 7 months to clear and cost £4171 in interest.

We would strongly recommend that you never just make the minimum payment month after month.

Transferring any outstanding balance to a new credit card offering a 0% balance transfer can save a customer money, by reducing the time taken to pay off the balance and also reducing 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.

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

0% Credit Card Offers

Balance Transfers:
0% for 32 months
Balance Transfer Fee:
0.99%
Purchases:
0% for 6 months
Representative APR:
18.9% APR (variable)
More Information

Credit Card Details

M&S Transfer Plus Credit Card*
  • 0% for 32 months on balance transfers made within 90 days of account opening
  • 0.99% balance transfer fee, minimum £5
  • 0% on purchases for 6 months from account opening
  • Collect M&S points every time you shop anywhere in the world with your card
  • Preferential rates when you use your card to order M&S Travel Money
  • Manage account online
  • Annual Fee: £0
More Information

Application Criteria

M&S Transfer Plus Credit Card*
  • You are a UK resident
  • You have a UK bank or building society account
  • You are aged 18 or over
  • You have not held a credit card with M&S Bank within previous 12 months
More Information
Representative Example: 18.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 18.9% p.a. (variable)

0% Credit Card Offers

Balance Transfers:
0% for 32 months
Balance Transfer Fee:
1.4%
Purchases:
0% for 3 months
Representative APR:
18.9% APR (variable)
More Information

Credit Card Details

HSBC Credit Card*
  • 0% interest for 32 months on balance transfers made within 60 days of account opening
  • 1.4% balance transfer fee (minimum £5)
  • 0% on purchases for 3 months from account opening
  • At the end of 0% offer period, balance transfers and purchases will revert to standard variable rate
  • home&Away rewards programme giving you instant discounts from well-known brands
  • Online account management
  • Annual Fee: £0
More Information

Application Criteria

HSBC Credit Card*
  • You have an annual income or pension before tax of £8,500 or more
  • You are a UK resident, including Isle of Man and Channel Islands
  • You are aged 18 or over
  • You do not hold an HSBC Basic bank account
More Information
£25 cashback when use card for minimum of £100 for either purchase or balance transfer within 60 days of account opening (terms apply)
Representative Example: 18.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 18.9% p.a. (variable)
Credit is subject to status

0% Credit Card Offers

Balance Transfers:
0% for up to 37 months
Balance Transfer Fee:
1.99%
Purchases:
0% for 3 months
Representative APR:
18.9% APR (variable)
More Information

Credit Card Details

Post Office Money Balance Transfer Credit Card*
  • 0% for up to 37 months on balance transfers made within 3 months of account opening
  • 1.99% balance transfer fee applies
  • 0% on all purchases for the first three months
  • No cash fee to buy travel money at the Post Office
  • Manage your account 24/7 with Post Office Money mobile app
  • Annual Fee: £0
More Information

Application Criteria

Post Office Money Balance Transfer Credit Card*
  • You are a UK resident
  • You have a bank or building society account
  • You have an annual income of £8,000 or more excluding unemployment benefits
  • You are aged 18 or over
  • You have no county court judgements
  • You must not already hold a Post Office Money Credit Card
More Information
A 1.99% fee applies and balance transfers must be made within 3 months of account opening
Representative Example: 18.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 18.9% p.a. (variable)
Post Office Credit Cards are provided by Bank of Ireland UK. Post Office Limited is a credit broker and not a lender

0% Credit Card Offers

Balance Transfers:
0% for 12 months
Balance Transfer Fee:
0%
Purchases:
0% for 12 months
Representative APR:
15.9% APR (variable)
More Information

Credit Card Details

Nationwide Select Credit Card just for Nationwide members*
  • 0% on balance transfers for 12 months from account opening
  • 0% balance transfer fee within first 3 months, 2.4% fee applies after, minimum £5
  • 0% on purchases for 12 months from account opening
  • Unlimited commission free purchases abroad
  • Manage account online
  • Annual Fee: £0
More Information

Application Criteria

Nationwide Select Credit Card just for Nationwide members*
  • Our credit cards are just for members. You’re a member when you have a current account, mortgage or savings account with us
  • Our credit card exclusively for members with a main current account
  • You have been living in the UK for the last 12 months
  • You have a gross income each year of more than £5000
  • You have a good credit history
  • You are aged 18 or over
More Information
Our credit card exclusively for members with a main current account
Representative Example: 15.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 15.9% p.a. (variable)

0% Credit Card Offers

Balance Transfers:
0% for up to 35 months
Balance Transfer Fee:
2.85%
Purchases:
0% for 3 months
Representative APR:
18.9% APR (variable)
More Information

Credit Card Details

AA Balance Transfer Credit Card*
  • 0% for up to 35 months on balance transfers made in first 3 months
  • 2.85% balance transfer fee
  • 0% for 3 months on purchases from account opening
  • Contactless payments
  • Mobile servicing app
  • Annual Fee: £0
More Information

Application Criteria

AA Balance Transfer Credit Card*
  • You are a UK resident
  • You have a bank or building society account
  • You have no outstanding County Court Judgements
  • You have an annual income of £8,000 or more
  • You are aged 18 or over
More Information
Representative Example: 18.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 18.9% p.a. (variable)
AA Credit Cards are provided by Bank of Ireland UK. AA Finances Services Limited is a credit broker and not a lender

0% Credit Card Offers

Balance Transfers:
0% for 30 months
Balance Transfer Fee:
2.75%
Purchases:
0% for 30 months
Representative APR:
18.9% APR (variable)
More Information

Credit Card Details

Post Office Money Matched Credit Card*
  • 0% for 30 months on balance transfers made within 3 months of account opening
  • 2.75% balance transfer fee
  • 0% on purchases for first 30 months
  • No cash fee when you purchase Post Office Travel Money
  • Manage your account 24/7 with Post Office Money mobile app
  • Annual Fee: £0
More Information

Application Criteria

Post Office Money Matched Credit Card*
  • You are a UK resident
  • You have a bank or building society account
  • You have an annual income of £8,000 or more excluding unemployment benefits
  • You are aged 18 or over
  • You have no county court judgements
  • You must not already hold a Post Office Money Credit Card
More Information
Representative Example: 18.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 18.9% p.a. (variable)
Post Office Credit Cards are provided by Bank of Ireland UK. Post Office Limited is a credit broker and not a lender

Making a fixed payment every month, instead of the minimum  payment will greatly reduce the time taken to pay off the balance and also reduce the amount paid in interest.

Typical Minimum payment

The credit card minimum payment does vary depending on which credit card company the payment is being made to due to the credit card companies different terms and conditions.

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

  • Barclaycard minimum payment
    • The greater of 1% of the balance plus interest or 2.25% of balance or £5
  • HSBC credit card minimum payment
    • The greater of 1% of the balance plus interest or 2.5% of balance or £5
  • Capital One minimum payment
    • The greater of 1% of the balance plus interest or £5
  • MBNA credit card minimum payment
    • The greater of 1% of the balance plus interest or £25
  • Santander credit card minimum payment
    • The greater of 1% of the balance plus interest or £5
  • Tesco credit card minimum payment
    • The greater of 1% of the balance plus interest or £25

Related Content From 0% Credit Card Expert:-

Today on 0% Credit Card Expert there are:-

93 UK 0% credit cards currently avaliable offering:-

  • 0% interest on balance transfers for up to 37 months
  • 0% interest on purchases for up to 30 months