- Home
- Meet the Team
- Log In
- Contact
- Careers
- Search
- Search Results
- Branches & ATMs
- Rates
- Log In
- About MCU
- Join MCU
- Personal Banking
- Lending
- Credit Cards
- Lending Services
- Insurance
- Member Resources
- MCU Financials
- Forms and Disclosures
- Privacy Policy
- Automated Telephone Banking
- Order New Checks
- Security & Fraud Alerts
- Privacy Notice
- Schedule an Appointment
Minimum Payment
The smallest amount of money owed on a balance to remain in good standing.
More Details
A minimum payment is the smallest amount that must be paid on a credit card or other type of loan each month in order to avoid default or late fees. The minimum payment is usually a percentage of the balance on the account, and may also include any interest or fees that are due.
Example
Imagine that you have a credit card with a balance of $1,000 and a minimum payment requirement of 3% of the balance. This means that you would be required to pay at least $30 on your credit card each month in order to avoid default or late fees. The minimum payment is usually calculated based on the balance on your credit card, and may also include any interest or fees that are due. It is important to make at least the minimum payment on your credit card or other loan each month in order to avoid default and to maintain a good credit history.
Related Terms
Home Equity Line of Credit (HELOC)
HELOC stands for home equity line of credit, which is a type of loan that allows a homeowner to borrow against the equity in their property.
Maturity Date
The date on which a loan or investment reaches its end and the principal amount is due to be repaid.
Bankruptcy
A legal process in which an individual or business has their assets liquidated or restructured in order to pay off creditors.