Credit Card Minimum Payments Explained

How do minimum payments work on your credit card?
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I'll explain how minimum payments work on your credit cards. They all have different rules and guidelines, but in general you can expect to pay about 1-3% of your total balance as a minimum payment and this payment will include interest and any fees. You will not pay off your balance quickly if you choose the minimum payment. If it's your only choice, pay it, but please try and pay extra if you can. Credit card interest is typically very expensive, so it's always best to avoid it if you can. Enjoy the video.

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#honestfinance #creditcards

[HonestFinance]

I hope this video helps you understand credit card minimum payments a bit more.

[mercedeswilkins]

Remember a perfect credit score 800-850 doesn’t mean anything if you don’t have the payment history to back it.

[admperry]

I'm surprised people don't know this..especially when most companies warn you as you make your payment. Unfortunately, right now a minimum payment is all we can afford right now...AS your explanation states in this video. 👍

[lianalonge]

For those who think people already know this, there wouldn’t be $925 billion in credit card debt as reported by Forbes on November 29, 2022. I just had my young cousin to watch his video because she was approved for her first credit card. I told her treat your credit card like a debit card . . . DON’T use the card unless you have the cash to pay off your balance before the due date!

[toonce]

I'm 26 and have always been hesitant to start credit cards! Now I realize credit cards are not scary if you're financially responsible, which I am 🙂 I ordered a credit card today to begin working on my credit score. Thank you for the tips.

[ss]

Thank you. This video is really simple and informative. :) Keep up the good work

[tecdrone]

Awesome video!
Right on point!
There are some many people on YouTube posting non sense, just to get viewers.
Thank you!

[Gearsandco]

I always try to pay my card in full at the end of the month If I can't I usually pay in big chunks per example if my balance is 1000 I go 4 payment of 250$ this way I would pay it faster and lower the risk of paying too much interest.

[gavinkaufmanworld]

Great video - really helpful 😁 Thanks for sharing ✨

[dr.mohamedaitnouh]

Very nice explanation! I would still need clarification about the formula they use. Is it
(Annual Rate)x Balance /12?
We know this, but this confirms it! Unfortunately, I lost my job and had to use credit cards sucks! Credit cards can save you. I really thank all of them.

[ReaveIdono]

Minimum payments only really exist to not destroy your credit imo. I try to play at least 2-3x the minimum payment to get it down fast.

[jakefield]

If we pay only the minimum for one month and pay off the full statement like a week after do you lose credit score or anything

[MrYossi]

Thanks for doing this video and clearly explaining the concept of minimum payment. I have struggled to understand this.

[twinklekeller]

Very well said. I've been to paying my debt and now almost done. I have new credit card and because of your advice that is honest, simple way, great advice, will apply it. Thank you so much for your help🙏🙏🙏 subscribe too to your channel.☺️😊🥳

[joerip]

Hey I pay my credit card in FULL every single time. But I can only make the minimum payment this month and will be able to go right back to paying in full after this month. Is this bad? I really don’t want to mess up my credit! Plz responds. Please and thank you.

[randomfunwithjake]

Getting my first credit card now and hoping i don't make a mistake but as i understand always pay your minimum and then pay even more on top of that but make sure the minimum is squared away

[tierahoward]

Thank you so much you really helped me

[Reciprocation_of_goodwill]

Thank you good sir, I'm young and I've never been taught such things.

[eliashernandez]

I agree you should always make your minimum payment but that being said you should pay in full if if you can comfortably. Remember to use your credit card they got to make money too sometimes so there's no shame in pain your minimum plus your interest your card will eventually trickle down yeah you're paying interest on that credit card but remember you have the privilege and access to that money that's the whole point of having a credit card

[JeffreyGillespie]

The fact that this kind of succinct information on credit card usage is so hard to find, but credit cards are so easy to get should give you some idea of why so many Americans are in debt up to their eyeballs.