The minimum repayment of a credit card refers to the minimum threshold for repayment of a credit card. If the cardholder has difficulty repaying all the amount due before the due repayment date, as long as the repayment is Minimum repayment amount, then it will not be regarded as late payment. Generally, the minimum repayment amount is 10% of the bill amount.

Disadvantages of credit card minimum repayment

1. Users only repay the minimum repayment amount in each period, and the comprehensive recurring interest will be relatively high.

2. If the user wants to apply for other loans, etc., the bank will worry about the user's repayment ability, resulting in the user's loan being rejected.

3. The bank will consider the user’s financial situation to be unhealthy, or even in a state of being short of money, so the user’s credit card limit cannot be increased.

The meaning of minimum credit card repayment

The minimum repayment amount of a credit card refers to the minimum threshold for repayment of a credit card. As long as the user repays the minimum repayment amount, then it will not be regarded as overdue repayment. Generally, the minimum repayment amount is 10% of the bill amount.

Repaying the minimum repayment amount will not affect personal credit, but after repaying the minimum repayment amount, starting from the due date of repayment, 50,000% of the full amount of the monthly bill will be charged. The interest is compounded on a monthly basis, which can easily form a vicious cycle.