Credit Card Minimum Payment?

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

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

Credit card Minimum Payment

What is a 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.

A credit card customer does need to make at least the minimum payment on time, every month. If they do not, 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, in the UK?

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

The law was changed several years ago. Now, for all 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. As a result 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, over the years.

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 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 up to 28 months
Balance Transfer Fee:
3%
Purchases:
0% interest for 3 months
Representative APR:
19.9% APR (variable)
More Information

Credit Card Details

Sainsbury’s 28 Month Credit Card
  • 0% interest on balance transfers for up to 28 months
  • 3% balance transfer fee on transfers made at application
  • 0% interest on purchases for first 3 months
  • Collect 2 Nectar points per £1 spent on Sainsbury's shopping and fuel
  • Collect 1 Nectar point for every £5 spent on your card elsewhere
  • Online account management
  • Annual Fee: £0
More Information

Application Criteria

Sainsbury’s 28 Month Credit Card
  • You have a permanent UK address
  • You have not been declined for credit in the last month
  • You do not have a history of bad credit
  • You are aged 18 or over
More Information
Representative Example: 19.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 18.95% p.a. (variable)

0% Credit Card Offers

Balance Transfers:
0% for 28 months
Balance Transfer Fee:
2.75%
Purchases:
0% for 3 months
Representative APR:
19.9% APR (variable)
More Information

Credit Card Details

NatWest Long Balance Transfer Credit Card
  • 0% on balance transfers for 28 months from account opening
  • 2.75% balance transfer fee
  • 0% interest for the first 3 months on purchases
  • Lock and unlock your credit card in app
  • Manage your card 24/7 online and by telephone banking
  • Annual Fee: £0
More Information

Application Criteria

NatWest Long Balance Transfer Credit Card
  • You are a NatWest customer
  • You are a UK resident
  • You are earning at least £10,000 per year
  • You are aged 18 or over
More Information
Only available to customers who have a current account, savings account, credit card or mortgage with NatWest
Representative Example: 19.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 19.9% p.a. (variable)

0% Credit Card Offers

Balance Transfers:
0% for 26 months
Balance Transfer Fee:
0%
Purchases:
0% for 26 months
Representative APR:
21.7% APR (variable)
More Information

Credit Card Details

Santander All in One Credit Card
  • 0% on balance transfers for 26 month from date of account opening
  • 0% balance transfer fee
  • 0% on purchases for 26 month from date of account opening
  • 0.5% cashback on all of your purchases
  • No foreign transaction fee on purchases made abroad in local currency
  • Cashback through Retailer Offers
  • Monthly Fee: £3
More Information

Application Criteria

Santander All in One Credit Card
  • You live in the UK permanently
  • You have a good credit record
  • You have an income of £7,500 per year or more
  • You are 18 years of age or more
More Information
Monthly fee payable of £3
Representative Example: 21.7% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 15.9% p.a. (variable) with a monthly fee payable of £3

0% Credit Card Offers

Balance Transfers:
0% for 24 months
Balance Transfer Fee:
1%
Purchases:
0% for 4 months
Representative APR:
20.6% APR (variable)
More Information

Credit Card Details

Co-operative Bank Credit Card
  • 0% interest for 24 months for balance transfers made within 60 days
  • 1% 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: £0
More Information

Application Criteria

Co-operative Bank Credit Card
  • 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 an annual income of £10,000 or more
  • You are aged 18 or over
More Information
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 the balance and also reduce the amount paid in interest.

Typical Minimum payment

The minimum payment on a credit card does vary depending on which card company the payment is being made to. This is 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 repayment
    • 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


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