How do I calculate minimum payment on a revolving credit account?

Question

I have a $9000 credit limit on a Polaris Star Card. I want to know what my minimum payment will be before making a purchase, so I can decide how much to spend. I have tried free online calculators but they tell me how long it will take to pay off, rather than what the card issuer requires.

Answer 1

it is usually 3% of your balance (including APR) or $15 or something like that which ever is higher.

Answer 2

Depending on your credit, the company usually require 1% to 3% minimum payment.  The interest rate combined with the balance will determine what you owe.  I recommend not spending more than you can pay off every month.  That way you avoid paying interest on your purchases.

Answer 3

Read the terms and agreement with your credit card.  They differ from bank to bank.  If you have further questions, call the 800 number on the back of the card.

Answer 4

Generally it is 4% or $15 which ever is more.    By the way, it is not good for building credit, or keeping your credit score

www.credit-cards-comparisons.com   has some great info on credit card questions (and no this is not my site).

Answer 5

We can't tell you what your minimum payment will be without knowing your interest rate, the exact terms you agreed to, and how your credit card company calculates their average daily balance.

All of this should be spelled out in your official credit card agreement that you got from the company, or available on their Web site.