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

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 28 months
Balance Transfer Fee:
0.99%
Purchases:
0% for 6 months
Representative APR:
19.9% APR (variable)
More Information

Credit Card Details

M&S Transfer Plus Credit Card*
  • 0% for 28 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: 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 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. Youre 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 20 months
Balance Transfer Fee:
2.9%
Purchases:
0% for 20 months
Representative APR:
19.9% APR (variable)
More Information

Credit Card Details

M&S Shopping Plus Credit Card*
  • 0% for 20 months on balance transfers made within 90 days of account opening
  • 2.9% balance transfer fee, minimum £5
  • 0% on purchases for 20 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 Shopping 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: 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 12 months
Balance Transfer Fee:
3%
Purchases:
None
Representative APR:
19.9% APR (variable)
More Information

Credit Card Details

Asda Cashback Credit Card*
  • 0% on balance transfers for 12 months
  • 3% balance transfer fee, minimum £3
  • 0% for 6 months on purchases of £200 or more at George.com
  • 1% cashback on your Asda shopping online and instore
  • 1% cashback at Asda Living, Asda petrol stations and George.com
  • 0.2% cashback everywhere else
  • Annual Fee: £0
More Information

Application Criteria

Asda Cashback Credit Card*
  • You have a permanent UK address
  • You have a UK bank or building society account
  • You are able to provide at least one telephone number
  • You have a regular source of income
  • You are aged 18 or over
More Information
Unlimited cashback vouchers - 1% at Asda plus 0.2% everywhere else
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)

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

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