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Detailed explanation-1: -Yes, you can keep your credit card active by paying just the Minimum Amount Due every month. But, you will have to pay high interest charges and also, there will be no interest free credit period. Just remember that the less you pay of the outstanding amount, you will be made to pay more in interest.

Detailed explanation-2: -If you pay the credit card minimum payment, you won’t have to pay a late fee. But you’ll still have to pay interest on the balance you didn’t pay. And credit card interest rates run high: According to December 2020 data from CreditCards.com, the national average credit card APR was 16.05%.

Detailed explanation-3: -You Reduce Your Credit Utilization Ratio and Likely Improve Your Credit Scores. Paying more than the minimum will reduce your credit utilization ratio-the ratio of your credit card balances to credit limits. (Credit utilization ratio makes up approximately 30% of your overall credit score.)

Detailed explanation-4: -If you pay less than the minimum amount due on your credit cards, unfortunately your card issuer will still count that payment as a missed payment. As a result, this could trigger all sorts of consequences including a late payment fee.

Detailed explanation-5: -Typically, the minimum amount due is calculated as 5% of your outstanding balance. Paying the only minimum amount due every month on your credit card can severely affect your credit score.