What is a minimum payment on a credit card?

A minimum payment is the smallest amount you must pay by the due date to keep the account in good standing and avoid a late fee — typically 1-2% of the balance or a flat floor (often $25-$35), whichever is greater.

Issuers use whichever method produces the higher result: a percentage of the statement balance or a flat dollar floor, sometimes with past-due amounts or over-limit fees added on top. Because the percentage shrinks as your balance falls, paying only the minimum clears debt very slowly — especially with a high APR accruing at the same time. Paying only the minimum on a $5,000 balance at 24% APR can take over 20 years. The Credit CARD Act of 2009 requires every statement to carry a minimum-payment warning disclosing how long payoff takes, and how much total interest you'll pay, if you send only the minimum each month — a disclosure worth reading precisely because the math is alarming.

Reviewed by the ClearValue Editorial Team · Last updated 7/8/2026