Credit Tips: Credit Card Minimum Finance Charge Definition

Posted On: January 1, 2006

Author: Doug Schmidt
Posted: Wed Jul 07, 2004 4:36 pm
Post subject: Credit Card Minimum Finance Charge Definition

2/13/2002 0:21 am CDT

Is the minimum finance charge, the minimum amount you have to pay each time you get the bill IF you did not buy anything at all? I noticed
> the minimum finance charges are around $0.50 to $1. Just need confirmation
> from you. Thanks

Author: Eugene
Posted: Wed Jul 07, 2004 4:36 pm
Post subject: Credit Card Minimum Finance Charge Definition

2/13/2002 0:29 am CDT

Is the minimum finance charge, the minimum amount you have to pay each time you get the bill IF you did not buy anything at all?

No, it’s the minimum interest you have to pay IF any interest is due. Most of the times it means that if you did not pay the full balance due by the due date, you will owe AT LEAST the minimum finance charge, even if you paid everything but a penny by the due date, and paid that penny a minute after the due date cut-off time.