0 hidden charges. 0 forex

What Is The Minimum Amount Due in a Credit Card

Reviewed by
Created on
May 8, 2023


What’s Inside

Sometimes, individuals make more purchases due to the convenience of having credit cards. But, eventually, they end up getting an unmanageable credit card bill that is difficult to pay. Banks or other institutions offer a 'minimum payment due option', allowing customers to pay a minimum of the bill instead of paying all at once. If you have an HDFC credit card, paying the minimum amount due in credit card HDFC will be an option.

Understanding Credit Card Minimum Payments: A Comprehensive Overview

'Minimum Payment Due' is the minimum amount required to settle a credit card balance, even if paying the entire amount is not desirable. The credit card minimum amount due is typically 5% of the total outstanding amount.

The amount required on your credit card to meet the minimum payment includes any MI payment conversions you selected. Your bank may add any unpaid balance from the prior cycle or amounts exceeding your credit limit to the minimum payment due.

Benefits of Paying Minimum Due Amount

Paying the minimum due amount will offer the following benefits.

  • If users do not consistently pay their credit card bills on time, they will be reported to the credit bureaus for their unreliable payment history. Paying the minimum amount lets you maintain your credit score.
  • Making the minimum payment due guarantees that the user will only have to pay the interest, when necessary, without incurring any extra late fees.
  • Even if you can pay the entire amount, you can save money by partially paying the bill and using your credit line for other investments. Your return may be more than enough to cover the margin.

Why Should One Pay in Full, Not the Minimum Amount of the Credit Card Bill?

Paying off your credit card balance in full each month can help improve your credit score and help you establish a good payment history. Here are some of the aspects which denote that paying the minimum amount due must be avoided.

  • You won't receive an interest-free period if you pay the minimum amount due on your credit card. However, if you pay off the outstanding balance, you will be given a grace period during which you won't have to pay any interest. If you do not pay the entire balance, the bank may charge interest on the remaining amount from the billing date.
  • In case you make only the minimum payment on your debt for a few months in a row, the interest on the remaining balance will accumulate.
  • Most credit card providers only offer up to 3 weeks for repayments. If you miss that window, your bank may block your card from future transactions until they settle the total amount due.


It is essential to remember that the less of the outstanding balance you pay, the more interest you accumulate over time. Sure, there can be times when you don’t have enough finances to pay the entire balance. Yet, the minimum amount due is only for emergencies. Insufficient payments may lead to dire consequences down the road.

If the credit card debt is too hard to tackle, you can take out a personal loan or opt for a balance transfer. With the Fi Credit Card, you can enjoy loans with additional rewards, discounts, and benefits on your purchases and 5% cashback on all your credit card spending.

Frequently Asked Questions

Does the minimum amount due affect the credit score?

If you make only the minimum payments on your credit cards over an extended period, it will increase your credit utilization ratio, which is detrimental to your credit score. Also, more than 30% credit utilization ratio can harm your credit score.

What happens if we pay only the minimum amount due on a credit card?

If you only make the minimum payment on your credit card bill, you will still accumulate interest on the remaining balance. However, meeting the minimum monthly payment will prevent you from incurring late payment fees and keep your credit card account open and your credit score intact.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
Share this article
Copied Link!
Credit Cards
What Is The Minimum Amount Due in a Credit Card


View similar articles in
Credit Cards
Get the Fi app