What happens if you pay less than the minimum on your credit card?
Summary
Paying less than the minimum amount on your credit card is considered a late payment. This can result in late fees, continued interest charges, loss of promotional rates, and damage to your credit score if the payment is more than 30 days late.Key Facts
- The minimum payment is the smallest amount you must pay each month to keep your account in good standing.
- Paying less than the minimum works as a late payment and may trigger late fees.
- Interest will continue to grow on the unpaid balance even if you pay part of the minimum.
- Paying less than the minimum can cause you to lose special low-interest rates (promotional APRs) or trigger higher penalty rates.
- Credit bureaus usually report late payments only if they are 30 days or more past due, damaging your credit score.
- Partial payments do not stop the clock on a late payment; the account must be brought current.
- Repeated late or partial payments can lead to account closure or collections.
- If you can’t afford the minimum payments, you can contact your credit card company to ask about hardship programs or other help.
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