How does a credit card company determine your minimum monthly payment? Is there a set formula for this? If so, can I find it online and plug some numbers into it? Thanks so much.
Usually 3-5% of your balance or a minimum of $15-$20 if 3% of the balance would be less than that. Example: Balance: $1250.00 $1250.00 x .03 = $37.50
http://www.bankrate.com/brm/calc/MinPayment.asp This is from Bankrate. Is this what you are looking for?
Take your balance and multiply x 2%, 2.2%, 3% or whatever until you get the number that matches what it states on your bill .. then you will know from then on.. Last night I figured that my minimum citi-bank payment was 2.075% of the balance. 4,915.72 * 2.075 = $102 My BofA is 2.2% .. Capital one 2% .. .. depends on the credit card.
