Credit card payment,how does it work.

Credit card payment, how does it work for example if I have to 400 hundred dollars and I make the minimun payment of 20 dollars so the next month I will have to pay Only 380 or they charge more fees if anybody knows tell me please thank you.

Answer #1

I agree with what the person ahead of me said.

And to go with your example, if you only pay 20 on a 400 card and the next month your balance is 380..and let’s say your interest rate is 10%, then you will be charged 38 in finance charges and your new balance will be 418. As the person ahead of me said, if you only pay the minimum your balance will go up.

Answer #2

the majority of you payment goes to interest accrued and not the principal so if you only pay the minimum you balance doesn’t go down much and you accrue more interest you you end up paying lots more..it better to pay as much as possible so that you reduce the principal balance and can pay it off faster..

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