What is minimum amount due in credit card bill?

“The minimum amount due on a credit card is the minimum amount you are required to pay, on or before the payment due date, to ensure that you do not have to pay late fees.” By calculating a minimum amount, the bank ensures you can repay a portion of the principal outstanding every month.

Can I pay only minimum amount due?

This is actually the minimum amount that you need to pay towards your credit card account in order to avoid the late payment fee. However, unlike paying the total amount due, if you pay only the minimum amount due, you would still be charged an interest on the balance outstanding amount.

What is a minimum payment?

A minimum payment is the least amount owed on a debt by a set due date without incurring penalties. Minimum payment is a term commonly associated with credit card accounts.

Do I get charged interest if I pay minimum payment?

If you pay the credit card minimum payment, you won’t have to pay a late fee. But you’ll still have to pay interest on the balance you didn’t pay. If you continue to make minimum payments, the compounding interest can make it difficult to pay off your credit card debt.

How is the minimum amount due calculated on HDFC credit card?

HDFC Credit Card Minimum Amount Due Calculation The minimum amount due on your HDFC credit card is 5\% of the total outstanding amount on the card or Rs.200, whichever is higher. Also, if there are any EMIs or unpaid dues from the previous statements, those will be added to your current outstanding and hence your minimum amount due also increases.

What happens if I fail to pay my HDFC credit card?

If you fail to pay even the minimum amount due on your HDFC credit card, you will be charged a late payment fee that would be added to your next statement. The late payment charge depends on the total outstanding on the card.

How long does it take to deposit a cheque on HDFC?

For example, for local cheques used to pay credit card balance, the amount would be credited to your card account only in 3 working days. So you would have to deposit the cheque at least 3 days before the due date. What Happens When I Don’t Pay the Minimum Amount Due on My HDFC Credit Card?

What does minimum due amount mean on credit card bill?

For Example if your card bill is Rs 40000 and the minimum due amount is Rs 3750 it will mean that by paying the “minimum due amount” you’re agreeing to a monthly EMI of Rs 3750 which includes a 12\% interest + service taxes on the principal amount of Rs 40000 payable over a period of 12 months.