ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The minimum amount due is usually set at 5% of the total outstanding balance, which is calculated on the date the statement is generated by most credit card issuers. This is the amount that you are required to pay before or on the due date of the payment.

Detailed explanation-2: -On some cards, issuers use a flat percentage-typically 2%-of your statement balance to determine your minimum. If your balance (including interest and fees) were $10, 000, for example, you’d owe a minimum of $200.

Detailed explanation-3: -Generally, the minimum amount due is fixed at 5% of the total outstanding balance as calculated on the date when the credit card statement is issued.

Detailed explanation-4: -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.

Detailed explanation-5: -Some credit card issuers calculate the minimum payment as a percentage of your total statement balance, including interest and fees, usually between 1% and 3%. For example, say your minimum payment is calculated as 2% of the balance, which is $5, 000. You would owe a minimum payment of $100.