@Anonymous wrote:
On a balance transfer of $2493 to Alliant Visa Platinum with 19% APR, the minimum balance every month is scheduled to be 3% or $75
Average of > 70% of CC issuers
compared to $24-$40 on most other credit cards.
You are only looking at minimum payments for small charges !
I know this response is a year late, just found it in a search I was doing.
Wanted to respond, give some numbers from research on minimum payments.
Issuers fall into 2 categories.
1) Want to be paid pack in reasonable time frame. (Conservative), ( > 70% of card issuers )
Larger of $25 or 3% ( Average of 3-dozen cards )
Fixed amount between $15 and $35 and interest of 2.5% - 4%
With provisions for past due interest and penalties
2) Let you pay a lower minimum, ( Lenient lenders), ( < 30% of cards )
With provisions for past due interest and penalties
Larger of $20 or (Interest+1% of balance) or (interest + fixed amount like $20)
Average was larger of $20 or (Interest+1% of balance)
Issuers don't calculate minimums based on intro 0%.
They use the normal interest rate and formula
With you balance @ 19%, interest is almost $40.
I found no card issuer that would let one pay less than interest + $15 ( $55 with your numbers )
with the average lenient issuer (Interest + (1%)), ( $65 with your numbers )
The 3% is $20 more than the minimum charged by the most lenient issuers.
Alliant is just another issuer that uses the more conservative formula like the majority of issuers.
Bottom line.
Taking both lenient and conservative issuers, average minimum was larger of ( $25 or 2.85% )
