Minimum payments

On your credit card, at least the minimum payment needs to be made each month by your payment due date. If your payment is not received on time, you could be charged a late payment fee. You may also lose any promotional offers you have on your card, and affect your credit score.

Three payment options each month

1. Pay the minimum

Paying the minimum can help in the short term with budgeting, but you may incur extra interest costs. You can make additional extra payments at any time. 

2. Pay more than the minimum

You can pay any amount between the minimum and the full balance, and vary the payments each month to suit your circumstances.

3. Pay the full balance

Clearing the full balance on your statement can often mean paying no interest, particularly on any recent card purchases.

You could cut your borrowing costs if you pay more than the minimum

To avoid paying interest on your credit card, you could clear your statement balance. It's always a good idea to pay more than the minimum if you can in order to reduce your overall interest.

Here is an example of what paying each option could look like. This is based on a balance of £3,000 with an effective interest rate of 24%. This assumes you don't use your credit card. 

Make the minimum payment

Starting at £84, reducing over time.

Time to clear your balance:
28 years and 3 months

Interest paid: £5,214

Total paid: £8,214

The costs are high.

Make a fixed payment

Sticking to £84 each month.

Time to clear your balance:
4 years and 10 months

Interest paid: £1,866

Total paid: £4,866

The costs are less.

Make a higher payment

Fixed at £124 each month.

Time to clear your balance:
2 years and 9 months

Interest paid: £981

 

Total paid: £3,981

The costs are even less.

 

Repayment calculator

Use the repayment calculator to see how your monthly repayments impact the total paid and amount owed.

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Results

Total interest paid = ##interest##

Total paid = ##total_paid##

Period of time = ##years## year(s) and ##months## months
 

Frequently asked questions

  • Each credit card provider will calculate your minimum payment in a different way. Your minimum payment will be either 2.5% of your statement balance plus interest and fees or £5 - whichever is higher. 

    Have a look at these two examples, based on a 0% promotional offer credit card for 12 months.

    Example one
    Your balance is £2,000. Your minimum payment is 2.5% of this, which is £50.

    Example two
    Your balance is £199. Your minimum payment is 2.5%, which is £4.98. This takes your minimum payment to £5, as it's the higher of the two amounts. 

    If you have an introductory 0% promotional interest rate, you still need to make the minimum payment each month.

  • To avoid missing a payment, you could set up a Direct Debit. This sends regular monthly payments to your credit card. 

    If a Direct Debit isn't taken for 37 months, it will become inactive and your bank and building society will remove the details from their systems. If this happens, you'll need to set up a new one.

    If you have a zero balance in any statement period, we won't take a payment. Your direct debit will still stay in place for when there is a balance to pay.

    You can make more than the minimum payment each month. Extra payments can be done through the Mobile Banking app, online, with cash and with cheques.
     

    Ways to pay your credit card

Key points on minimum payments

  • You must always make the minimum payment to your credit card each month to avoid falling behind with your payments. Remember, if you miss a payment, you could be charged a fee and lose any promotional offers you have.
  • Your minimum payment can vary based on the balance on your statement for that month. This will be 2.5% of your balance or £5, plus any interest or fees - whichever is more. 
  • Where possible, you should try to pay more than the minimum payment to reduce your interest paid.

If you're having trouble making your minimum payment each month, we can help. Have a look at our support on money worries.

After 18 months, if you've paid more in interest, fees and charges than off your total balance, we'll write to you about ways we can help. This is called persistent debt.

Learn more about managing credit

Explore ways to make payments online, by phone, in branch and by post. 

You can also use our guides to learn more about managing your credit card and how to stay in control of your spending, balance and repayments. 

Payment options

Tips for managing your credit card