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Credit card firms must ensure the minimum monthly payment is equal to at least the amount that repays the interest, fees and charges that have been applied to the customer’s account plus one percentage of the amount outstanding.
When you take out a credit card you will need to make a payment every month to repay any interest, fees and clear part or all of the outstanding balance. Credit card companies usually have a minimum repayment set as a pounds and pence figure and/or a percentage of the balance. For example, this could be at least £25 or 1% of the outstanding balance. You will need to pay as a minimum the higher value of the two. A £1,000 balance would have a minimum repayment of £1 based on 1%, but as this is below £25, then your minimum payment will be £25. (Assuming no interest or other fees to pay).
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