Your credit card likely says “no minimum payment due” because the statement balance was paid in full by the most recent due date or there was no account activity during the billing period. As long as the statement balance is paid by the due date, there will be no payment due until the next billing period ends.
Key Things to Know About Credit Cards With No Minimum Payment Due
- If your statement balance is $0, that means there is no minimum payment due.
- If there’s no minimum payment due, but there’s a current balance on your account, it means those charges were made after the end of the last billing period and will be listed on the next statement.
- To avoid having a minimum payment due every month, you should pay off the entire statement balance by the payment due date and stop making purchases on the account.
It’s worth noting that if you pay your balance in full before the due date, you may not see a $0 balance on your credit report right away. That’s because your credit report reflects the balance on your account when the issuer reports your information to the credit bureaus, which is typically at the end of the billing period, not on the date you paid the bill.
If you want a $0 balance reported to the credit bureaus, pay your statement balance in full before the statement closing date and don’t make any purchases for the rest of the billing period.
This answer was first published on 09/20/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Why does my credit card say no minimum payment due? If your credit card statement or online account says “no minimum payment due” that means you've already made a payment that billing cycle for at least the minimum required amount.
Why does my credit card statement say no minimum payment due? ›
If your credit card statement reflects a zero minimum payment due - even if you have a balance on your card - it is because of recent, positive credit history. A review of your recent credit history and determination to waive your minimum monthly payment allows you to skip your monthly payment for a statement cycle.
Why you should not pay minimum due on credit card? ›
Disadvantages of Paying only the Minimum Payment Due
Not only that, you will also get up to three weeks' time to clear the outstanding amount after statement is issued. You will not be offered any interest-free credit period if you have paid only the Minimum Amount Due (MAD) and not the credit card outstanding in full.
What happens when you can t make minimum payment on credit card? ›
Your credit score will drop anywhere from 50 to 150 points, depending on where you started. That will immediately impact the interest rate you're paying, if you have other credit cards. It also will put a stain on your credit report that won't go away for seven years.
How do credit cards determine minimum payment due? ›
A credit card minimum payment is typically calculated as a percentage of your statement balance. Some lenders charge a percentage of your balance, while others factor in interest and other fees. And in other cases, you may only be charged a flat monthly payment, such as $35.
What is the minimum payment on a $3,000 credit card? ›
Minimum Payment on a $3,000 Credit Card Balance by Issuer
| Issuer | Standard Minimum Payment |
|---|
| Capital One | $30 |
| Chase | $35 |
| Citibank | $45 |
| Credit One | $150 |
6 more rowsOct 19, 2021
It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.
What is the minimum payment on a $500 credit card? ›
Percentage method: Some credit card issuers calculate the minimum payment as a percentage of your outstanding balance. This percentage typically falls within the range of 1% to 3% but can vary. For example, if your outstanding balance is $500 and the minimum payment percentage is 2%, your minimum payment would be $10.
Will minimum payments hurt my credit? ›
But your credit scores may still be affected when you pay only the minimum each month, according to Sherry. “It might hurt some aspects of credit scoring analytics, such as credit utilization,” Sherry says. “If you only pay the minimum, you're going to take longer to pay off outstanding balances.”
What happens if you only pay half of your credit card bill? ›
Unless you've reached a prior agreement with the credit card company, partial payments will not satisfy your account's minimum payment requirements. Even if you pay a little money, your account will become delinquent, and the credit card company will report the late payments to the credit bureaus.
If your payment is late, you could be charged a late payment fee. Depending on how late a payment is, it could also be reported to the credit bureaus, Equifax®, Experian® and TransUnion®. And that could affect your credit scores.
Do you get charged interest if you pay minimum credit card payment? ›
Credit cards apply interest on your outstanding balance every month. So if you pay only the minimum amount, your outstanding balance will remain high. The interest on the outstanding balance will accumulate month on month, making your debts higher.
Can you ask credit card companies to lower minimum payments? ›
Ask your lender for a lower payment
If warranted according to the financial institution's guidelines, you may be able to lower your interest rate or minimum payment during the call.
How long will it take to pay off $20,000 in credit card debt? ›
It will take 47 months to pay off $20,000 with payments of $600 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
What is the minimum payment on a $5000 credit card balance? ›
Apply the percentage to your current credit card balance and then add your fees and past-due amounts. First, you'll owe 2% on the balance of $5,000, then you'll add $120 past due and $80 in late fees. That would make your minimum payment $300.
What is the minimum payment on a $2000 credit card? ›
Minimum Payment on a $2,000 Credit Card Balance by Issuer
| Issuer | Standard Minimum Payment |
|---|
| Capital One | $25 |
| Chase | $35 |
| Citibank | $30 |
| Credit One | $100 |
6 more rowsOct 19, 2021
A credit card minimum payment is the smallest amount due each monthly billing cycle. Paying the minimum on time can help you avoid penalties and fees. But keep in mind that you'll still be charged interest when you carry a balance. Paying your full balance each month could help you avoid paying interest altogether.
Is it better to pay credit card before statement or due date? ›
To avoid paying interest and late fees, you'll need to pay your bill by the due date. But if you want to improve your credit score, the best time to make a payment is probably before your statement closing date, whenever your debt-to-credit ratio begins to climb too high.
