Credit cards typically have high interest rates compared to most other types of loans. That means it’s potentially expensive to borrow money with a credit card. When you don’t pay your full credit card balance every month, it’s easy to accumulate boatloads of interest fees quickly.
What is a credit card minimum payment? It’s the minimum amount of money a credit card company is willing to accept each month to keep your account in good standing.
Don’t make the mistake of thinking the minimum due is a “monthly payment” you should be making to pay off your credit card bill. When you only pay the minimum due on your credit card statement, your credit card issuer will make a lot of extra money from you.
