topic Re: Minimum payment questions in Credit Cards

Minimum payment questions

zsepthenne — Fri, 14 Mar 2014 19:16:45 GMT

I'm a bit of a credit rookie so sorry if this is a silly question. How can I figure out what minium payments are for my cards according to changing balances? So far I rarely hold balances over 10% on the four cards I do have charges on. My two comenity cards min payments have only been $25, same for BofA(i think, usually just come close to PIF), and Walmart. Discover is my newest card and when my first statement cut yesterday it had a $35 min payment on a $166 balance. I PIF usually, but do different cards just have different standard minimums that they go by? I want to know the minimums in case of some unlikely horrible financial disaster.

Re: Minimum payment questions

Anonymous — Fri, 14 Mar 2014 19:45:13 GMT

The minimum payment formula is stated in the T & C, and varies between cards.

Re: Minimum payment questions

zsepthenne — Fri, 14 Mar 2014 19:52:11 GMT

Ok, thanks

Re: Minimum payment questions

ori68 — Fri, 14 Mar 2014 20:15:14 GMT

i am not sure exactually how acurate this is, but i think its a good starting point.

Bank of America (BAC _) The minimum payment for a Bank of America credit card is 1% of your current balance, plus interest charges and any late fees for the month.
Capital One (COF _) If your balance is less than $25, your minimum payment will equal your balance. Otherwise, your minimum payment will be greater of $25 or 1% of your balance plus interest and late payment fees.
Chase (JPM _) Your minimum payment will ordinarily be the larger of $10 (or total amount you owe if less than $10) or 2% of the new balance; or the sum of 1% of the new balance, the periodic interest charges and late fees they have billed you on the statement for which your minimum payment is calculated.
Citi (C _) The minimum payment due is 2% of the outstanding balance or $30, whichever is higher.
Discover (DFS _) The minimum payment due will be the greater of $35 or 2% of the new balance shown on your billing statement, or any interest charges and late fee shown on your billing statement plus $20.

www.thestreet.com/story/11914100/1/why-minimum-payment-on-a-credit-card-costs-you-so-much.html

Re: Minimum payment questions

zsepthenne — Fri, 14 Mar 2014 20:30:03 GMT

@ori68 wrote:
i am not sure exactually how acurate this is, but i think its a good starting point.

Bank of America (BAC _) The minimum payment for a Bank of America credit card is 1% of your current balance, plus interest charges and any late fees for the month.
Capital One (COF _) If your balance is less than $25, your minimum payment will equal your balance. Otherwise, your minimum payment will be greater of $25 or 1% of your balance plus interest and late payment fees.
Chase (JPM _) Your minimum payment will ordinarily be the larger of $10 (or total amount you owe if less than $10) or 2% of the new balance; or the sum of 1% of the new balance, the periodic interest charges and late fees they have billed you on the statement for which your minimum payment is calculated.
Citi (C _) The minimum payment due is 2% of the outstanding balance or $30, whichever is higher.
Discover (DFS _) The minimum payment due will be the greater of $35 or 2% of the new balance shown on your billing statement, or any interest charges and late fee shown on your billing statement plus $20.

www.thestreet.com/story/11914100/1/why-minimum-payment-on-a-credit-card-costs-you-so-much.html

Thanks Ori, that's helpful. It's all the "and's" and "or's that trip me up a bit. I think I've got it though. I'm a MASSIVE planner so I like to have all sorts of disaster plans and such in place lol. Though I wonder why I have no earthquake plan in place as I live in CA hmmmmmm.

Would you say that this calculator is pretty good? http://www.bankrate.com/calculators/credit-cards/credit-card-minimum-payment.aspx

Re: Minimum payment questions

Anonymous — Fri, 14 Mar 2014 20:38:27 GMT

There sure is a bit of difference in your scores for each of the bureaus. So which one would be more accurate?