What is the minimum payment of a credit card?

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In Canada, minimum credit card payments often depend on a percentage of your balance (2% to 5%) or a flat rate of $10. For Quebecers, minimums differ by your card’s start date, with a 5% standard by 2025 for older cards. Paying just the minimum stretches your debt timeline due to interest. Double-check your statements. For clarity or help, reach out by phone, text, or live chat!

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Minimum Credit Card Payment Question

What is the minimum payment of a credit card? When I check my credit card bill

From: Anonymous Question
Location: Coquitlam, British Columbia (BC)
Category: debt management plan

Minimum Credit Card Payment Answer

In Canada, credit card minimum payments usually hinge on either a small percentage of your balance—between 2% and 5%—or a flat $10, based on what your card issuer decides. So, if you’ve got a $2,000 balance and the minimum is 5%, you’ll need to pay $100. But, with a $200 balance at 2%, your payment would technically be $4, yet the $10 floor kicks in instead. Always double-check those statements, as banks love their unique twists on the rules.

Now, if you’re kicking back in Quebec, know the vibe is different depending on your card’s birthdate. Cards before August 2019 are on a steady climb up to a 5% payment by 2025. Newer cards have already hit that mark. Elsewhere, it’s like the Wild West with no rigid standards—expect 2% to 3% or again, that trusty $10 minimum. Watch out though, just paying the bare minimum can stretch out your debt due to interest. Need more clarity? Give us a shout by phone, text, or live chat!

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

The minimum payment on a credit card is typically calculated as a percentage of the outstanding balance, often around 2-3%, plus any fees and interest charges. However, specific regulations governing the disclosure of credit card terms, including minimum payments, can vary. For detailed regulations pertaining to minimum payments, refer to the Cost of Borrowing (Disclosure) Regulations under the Bank Act (RSC 1970, c B-3), specifically section 9 which addresses requirements for monthly statements and how to present amounts owed and payments due.

From: OSB Helper

Related Questions to Minimum Payment Of A Credit Card

Here are the top 5 most frequently asked questions related to the minimum payment of a credit card, tailored to the Canadian context:

What is the minimum payment percentage for credit cards?

The minimum payment percentage for credit cards in Quebec is currently 4.5%, increasing to 5% by August 1, 2025, while for cards opened before August 2019, it is at least 2% of the statement balance[2][3].

How is the minimum credit card payment calculated?

The minimum payment can be calculated as a fixed dollar amount, a percentage of the credit card balance, or an integrated amount including interest and fees[5].

What happens if I don’t make the minimum credit card payment?

Failing to make the minimum payment can result in late penalty fees, an increase in the interest rate, and a negative impact on your credit score[5].

Are there different minimum payment rules for new and old credit cards?

Yes, credit cards opened starting August 1, 2019, must have a minimum payment of at least 5% of the statement balance, while older cards may have lower minimum payment requirements[1][3].

Can the minimum payment percentage change over time?

Yes, the minimum payment percentage can change over time; for example, in Quebec, it is increasing from 2% to 5% in incremental steps until August 1, 2025[1][2].

If you have a question about debt see our debt questions or ask your own debt related question.

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