What does Minimum Finance Charge mean?
The minimum payment for a credit card is the monthly installment set threshold you must repay, and if you default on your payments or if you cannot repay the minimum, then these payments are subject to paying interest. The minimum finance charge on the other hand is a fee you must pay in case of carrying the balance from one month to the other.
These fees differ from one issuer to the other, but if for example the minimum finance charge at the respective issuer is set at $0.70, even if you’d have to pay only $0.50, you still are required to pay the minimum set by them. Each month the charges you must pay are calculated individually, however you always pay from the minimum and up. |
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