Credit card question...?

Question

i have a credit card.. im not worried about being in debt or anything because i have a lot of money saved up.. but im just wondering.. i have only a 500 dollar limit.. how much will the minimum required payment be each month? (approximately) thanks :]

Answer 1

your minimum payment would be 4% of the outstanding balance - or you can make the full payment, so if you buy an item just make sure you realize you will need to make  a minimum payment - even if you have "zero" interest card.

Answer 2

Read you card agreement.  it's usually between 2 and 5% of the balance or a certain min.  So if you run up the full $500 the min payment would be $25.00 assuming 5% min.

Answer 3

The minimum payment will depend on your credit card company and how much you spend. If you don't use it at all during a month you won't feel any kind of sting.

Answer 4

i dunno

Answer 5

No one can tell you without knowing your interest rate and the amount you owe.  I am assuming you mean the maximum amount of $500.  Depends entirely on what your interest rate is.  Interest rates vary and can be negotiated.

Interest rates increase if you pay late as well.  Can go up to almost 30% -- that is 30 cents on every dollar you owe over the year.  If you have savings built up, why would you consider borrowing money unless you want to build up a credit history and positive credit.

You can do tht by charging and then at the end of the month, pay it off in full and you incur no interest at all - you must pay the amount you charged.  They will soon want to increase the amount you can borrow.  Just be careful as credit cards can be a trap for the unwary.  And by all means, pay them before the due date as they must have the payment in their hands when it is due, not just a postmark date.  

So long as you pay off the account in full each month,  you will incur a payment only of what you owe.  Though they may say  you owe none this month or owe very little, but there is an interest rate building up that is costing you money.  Some have payments as low or lower than the interest which means  you never get them paid off.  

Be sure to check the interest rate you are being charged, to pay on time, and to pay more than the interest amount you are charged.

As to the payment, the rule is interest rate x amount x time (1/12 for one month).  I think that is how they calculate it.

I may hve left something out there but I can't think what it is.

Best thing is to ask the company what it would be each month if you had $500 charged.  But if your intent is to build up a credit history -- pay it off each month and pay no interest as that still gives  you a positive credit history and does not negatively influence your credit history so long as you pay on time each month.