The minimum repayment amount of a credit card refers to the minimum repayment amount allowed by the bank if the cardholder is unable to repay the entire amount due before the due date of the credit card bill. This limit usually consists of 10% of the consumption amount plus other fees and payables, and will not enjoy the interest-free repayment period. The minimum payment will be clearly stated on the bill.

For example, if your overdraft limit is 10,000 yuan, the minimum repayment amount may be 1,000 yuan. If you only repay the minimum payment, then on the next month's bill date, in addition to the principal, you will also need to pay interest on the remaining outstanding amount. Interest is calculated based on the daily interest rate of 5/10000 on the accounting date. If you only repay 1,000 yuan, you will need to pay at least 9,000 yuan principal plus 900 yuan in interest next month, for a total of 9,900 yuan. Therefore, minimum repayments should only be considered if financial circumstances are tight, otherwise interest costs can be quite high.

In general, the minimum repayment is not an ideal repayment method. It may lead to additional liquidated damages and high interest. Therefore, if the economy allows, it is best to repay in full to Avoid unnecessary financial burdens. Understanding this can help cardholders make informed repayment decisions.