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.

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