The minimum repayment amount of a credit card refers to a minimum repayment method that you can choose when you don't have enough funds to complete the full repayment on the due repayment date, which solves the problem of tight funds, but you can't enjoy the interest-free repayment.

the minimum repayment amount is generally 1% of the total amount owed, and this minimum repayment amount will be shown on the current bill. That is to say, on the billing date, there will be two amounts to be paid attention to in the bank bill received by the cardholder, one is the amount payable in this period, and the other is the minimum repayment amount. Once the consumption exceeds the repayment, you can choose to repay only the minimum repayment amount.

repayment according to the full amount of the bill or the minimum repayment amount of the bill will not cause overdue, so it will not affect the personal credit information system. This is something that cardholders can rest assured of. The difference between the two is that interest will be generated if repayment is made according to the minimum repayment amount.

before the repayment date, if the cardholder repays the bill in full, it will be normal repayment and will not generate interest.

before the repayment date, if the cardholder repays the minimum repayment amount, or if the repayment amount is greater than the minimum repayment amount but not the full amount owed, the bank will charge interest, but it will not be counted as overdue.

before the repayment date, if the cardholder fails to repay or the repayment amount is lower than the minimum repayment amount, it will be considered overdue, which will not only generate interest late fees, but also affect the credit investigation.

Extended information:

Disadvantages of minimum repayment by credit card

1. Full penalty interest. At present, except for ICBC's credit card, all other banks use the minimum repayment by credit card. Full penalty interest means that the cardholder has to repay the corresponding interest after using the minimum repayment, and the calculation of this interest is based on the total amount of all consumption before the first minimum repayment.

No matter how much money is paid back every month and how much money is left, the interest paid is constant. If the minimum repayment time is longer, the more interest will be borne. It is understood that if the minimum repayment is used for a long time, the annual interest rate can reach 2%-3%, which is very terrible to think about.

2. You can no longer enjoy the interest-free period. Under normal circumstances, as long as the credit card is repaid on time, no interest will be charged from the consumption date to the repayment date, and the longest interest-free period can reach 6 days. However, if the minimum repayment method is used, there will always be arrears in the credit card, and the credit card will no longer enjoy the interest-free period every month until all the arrears are paid off.

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