Calculate Minimum Payment on Credit Card

Many people rely heavily on credit cards to pay for necessities and extravagances. When payment by credit card, however, because sometimes it can be a shock to see how much is the minimum payment. Knowing how to calculate the minimum payment itself can not only reduce the shock, but it can also help with the budget more accurately.

There are two main credit card companies calculate payments ways by the Office of the Comptroller of the Currency formula or percentage of outstanding balance. Call your credit card company or read back of your last statement to see if the lender calculates the minimum payments by the Office of the Comptroller of 2003 of the formula recommended currency or percentage of balance. Determine the amount of transaction fees incurred during the month.

Calculate Minimum Payment on Credit Card

Typically, transaction frees are placed on cash advances and balance transfers. Other fees may include fraud insurance or, for some credit cards, monthly membership fees. Confirm APR Annual Percentage Rate on your card.

Since APR can change during lifetime of credit card, you’ll probably need to check your last bill to make sure it’s what you remember. This is especially true if you opened account during zero percent APR promotion, as APR increases after 6 months to year. Find outstanding balance on your card.

This is how much you currently owe, not your credit limit. Calculate minimum payment on credit card using OCC’s formula. First, multiply your outstanding balance by your APR.

If, for example, you owe $1,500 on card with 15 percent APR, equation would be 1,500 x 0.15 = 225. Set this number aside to plug into formula.

We hope this information about “How to Calculate Minimum Payment on Credit Card” is really helpful to you as well as other information related to credit card

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