Calculation of Minimum Credit Card Payments

Author: jims2321
Posted: Wed Jun 23, 2004 6:26 pm
Post subject: Calculation of Minimum Credit Card Payments

This is probably a fairly simple and straight forward question but here it goes.... When calculating the minimum payment on a credit card, what is the usually percentage of the outstanding balance used in the calculation? Is there any place to get a list or idea of what each major credit card company's % is?

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Author: Verne
Posted: Wed Jun 23, 2004 10:18 pm
Post subject: Calculation of Minimum Credit Card Payments

The usual minimum is 2%. At the edge of the pool, where the water is calmer, more reputable or serious banks may want 2.5%. I've never seen anything higher in my limited 18 earth years (if I allow for Mercury in retrograde) of credit misuse and 20 plus credit card accounts.

For the lowest min payments try to stay in the middle of the pool and enjoy the balance transfer frenzy.

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Author: Polonius
Posted: Thu Jun 24, 2004 9:14 am
Post subject: Calculation of Minimum Credit Card Payments

The average minimum payment on all surveyed cards is 2.38%. Of these, 76 (53%) cards have minimum payments of 2%; 33 have minimum payments between 2%-2.5% and 24 have minimum payments of 3%.

The highest minimum payments found this year are on cards issued by Centura Bank, Helena National Bank and Arkansas National Bank, who ask cardholders for 4% to 5% of the balance each month.

Five cards give you a range because the minimum payment varies by cardholder. US Bank sets the minimum payments on its World Perks card at between 2%-4% of the balance; Washington Mutual Bank (Citibank) and Providian charge between 2.5%-3%.


That's an excerpt from Consumer Actions' Credit Card Survey of 2003. More details are here:

http://www.consumer-action.org:16080/English/CANews/2003_March_CreditCard/
.