I have a Mastercard with a $1000 limit. This is my first card and I was wondering, if I spend $100 how much do I have to pay back when I get my first bill? How can I find what the minimum payments?
2007-09-03 05:28:49 · 13 answers · asked by catanomicsunset 1 in Business & Finance ➔ Credit
pay it off in full every month, or suffer the consequences of DEBT.
2007-09-03 05:32:37 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Read the info you got when you signed up for the card - that will tell you how minimum payments are calculated. Minimum payment would probably be something like $20.
If you just make minimum payments, you'll pay a ton of interest and your $100 item will end up costing you much more than that. Pay as much as you can, not just the minimum every month - your goal should be not to charge anything you can't pay off in full when the bill comes in.
2007-09-03 06:11:12 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The minimum payment is the least amount you can get away with paying and keep the account current and not past due. However, never pay only the minimum payment if you can possibly help it. The interest will keep piling up and it will take forever to pay off the balance. You want to make steady payments, though, because long-term accounts reflect well on your credit report and make it easier to get loans in the future. If the minimum is $50, you should pay at least 10% more than that per month to help cover accrued interest.
2016-05-20 02:25:24 · answer #3 · answered by drusilla 3 · 0⤊ 0⤋
"minimum payments" are a problem because they trap you into long term payments with interest added. So when you buy (and because of the interest) you're never getting a good deal since over time you will pay a couple of times more than what that product was ever worth.
The idea behind using credit intelligently is to never buy anything that you can't pay off within a month. Otherwise it will build and before you know it you will be in trouble. So figure on paying the entire amount.
2007-09-03 05:37:52 · answer #4 · answered by sophieb 7 · 0⤊ 0⤋
Minimum payment consists of the 1 or 2 % of the balance + the interest rate and late fee if any.
Pay as much as you can. The more you pay, the less interest you have to pay. If you can afford to pay the balance each month then do so. Do not carry the balance if you don't have to.
THERE IS NO GRACE PERIOD. If your payment dues on 9/6 that's your due date. Payment has to post on that day. If they receive the payment on the 7, that's considered late and that'll be a late fee on the account.
2007-09-03 05:35:01 · answer #5 · answered by Who wants to know 4 · 1⤊ 0⤋
The bill will let you know what the minimum payments are for each month.
Word of advice, ALWAYS pay more than the minimum payment. Acutally, don't even start using the credit card.
2007-09-03 05:32:38 · answer #6 · answered by Laughing Libra 6 · 0⤊ 0⤋
The minimum payments are disclosed in the terms you agreed to when you got the card. Standard is 2% but I highly recommend you always pay back the full amount. Credit card debt is a nightmare, once it starts it never ends.
2007-09-03 05:32:24 · answer #7 · answered by fau484 2 · 2⤊ 0⤋
There's probably a "grace period" on your card. That means you have a certain time from your billing date to pay it off in full without incurring any interest at all. If I can give you one piece of advice, it would be to get in the habit of paying your card off in full each and every month and DON'T just make the minimum payment. It will help your all-important credit score which will help you secure credit in the future, plus it will prevent you from having to pay interest on the card...and who wants to give away money?!?! Good luck!
2007-09-03 05:35:43 · answer #8 · answered by marathonbdogg 2 · 0⤊ 1⤋
Number 1 rule of using a credit card - don't charge it if you can't pay for it. That's how people get in trouble with debt. If you charge $100, plan on paying $100. That way you don't end up paying more with finance charges.
2007-09-03 05:34:05 · answer #9 · answered by Angie 6 · 1⤊ 0⤋
The incentive for them (MC) is for you to charge to your hearts content. DON'T! To keep good credit just charge to 30% of the 1,000. credit line. Your min. pmts, will be quite low, but remember you're paying interest everytime you keep a balance. Go on line to the credit card co. and register to view and pay on line so you will know when it is due before you even get the paper bill.
2007-09-06 04:36:37 · answer #10 · answered by candleslightup 2 · 0⤊ 0⤋
The minimum payment will be listed on your bill. Please pay off your credit cards completely though as you should avoid that trouble.
2007-09-03 05:33:33 · answer #11 · answered by Justin T 5 · 1⤊ 0⤋