minimum payment due?

[Anonymous]

Does this mean the TOTAL amount that I owe from the previous statement or is it more of an arbitrary number that the CC company set?

[ksantangelo23]

Check your card agreement, it's different for every CCC. Typically its between $25, and $35, plus a rounded percentage of your statement balance

[Pat94108]

It all depends but it's not arbitrary and it depends on how much you owe. It's not the total balance though. Although you should PIF as a rule of thumb and to get into good habits. Check your credit card agreement.  Don't know about other credit card companies but Amex, for instance, usually explains to you how they calculate your minimum payment so I assume others must do the same. 

[enharu]

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@Anonymous wrote:
Does this mean the TOTAL amount that I owe from the previous statement or is it more of an arbitrary number that the CC company set?

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Check your T&C on how your minimum payment is calculated.

Usually it is $25-40 base, or 1-4% of the total amount you owe, whichever is more.

[p-]

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megaman1 wrote:  Does this mean the TOTAL amount that I owe from the previous statement or is it more of an arbitrary number that the CC company set?

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If you have a charge card, i.e. an American Express NPSL, your minimum payment is the total balance at statement time.  If your balance was 1,000 when the statement cut, your payment due is 1,000.  

If you have a regular revolver, your minimum payment is a progress payment on the statement amount.  If your balance was 1,000 when the statement cut, your balance might have increased to 1050 with interest, and payment due might be 75.  Your statement will show you how long it will take to pay off if you continue to make only minimum payments.  It could take decades if that's all you pay.  The minimum payment is generally the total interest charged, plus a percentage of the outstanding balance.

If you have a Signature card, your minimum payment is the amount you went over your limit on the NPSL line, plus the normally calculated progress payment explained above.

[Pat94108]

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@p- wrote:

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megaman1 wrote:  Does this mean the TOTAL amount that I owe from the previous statement or is it more of an arbitrary number that the CC company set?

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If you have a charge card, i.e. an American Express NPSL, your minimum payment is the total balance at statement time.  If your balance was 1,000 when the statement cut, your payment due is 1,000.  

If you have a regular revolver, your minimum payment is a progress payment on the statement amount.  If your balance was 1,000 when the statement cut, your balance might have increased to 1050 with interest, and payment due might be 75.  Your statement will show you how long it will take to pay off if you continue to make only minimum payments.  It could take decades if that's all you pay.  The minimum payment is generally the total interest charged, plus a percentage of the outstanding balance.

If you have a Signature card, your minimum payment is the amount you went over your limit on the NPSL line, plus the normally calculated progress payment explained above.

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What do you mean by NPSL ? I have a sig card but I am not sure what you're talking about. Are you referring to the credit access line (per Chase' wording). I never truly understood the signature cards "credit line" or lack thereof for that matter. Is it the same as Amex NPSL? 

[p-]

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Pat94108 wrote:  What do you mean by NPSL ? I have a sig card but I am not sure what you're talking about. Are you referring to the credit access line (per Chase' wording). I never truly understood the signature cards "credit line" or lack thereof for that matter. Is it the same as Amex NPSL? 

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As I understand it, having a Visa Signature card as compared to a regular Visa means that you can exceed your credit limit, for approved transactions.  For example, if you were travelling and had more reimbursable expenses than normal, and needed to keep spending the card would be approved.  It's like an NPSL card in that nobody really knows how far they will let you take it.  Presumably there is a hard limit somewhere that you can't see.

The catch is whatever you went over the CL is due as part of the minimum payment on the next statement.  From the Visa Signature page: "If your card issuer authorizes a transaction that causes you to exceed your revolving credit line, then you must pay, as part of your monthly minimum amount due, the amount by which your new balance exceeds your revolving credit line."

This makes a signature card the best of both worlds; ability to pay over time without the restriction of a limit.  

I imagine, however, that if this was done too often it might make the card issuer a little nervous.  

[Pat94108]

I see. Thank you p-. Clearer now. 

[p-]

Anytime...

[Anonymous]

Someone I know had an AMEX NPSL and tried to charge $20k+ on the card.  It went through but he said that the AMEX rep called him and asked if he can pay that since it is a largest purchase and asked if he would pay advance on the charge. 

He said yes he can pay and no to will not pay some in advance.