The minimum payment is the smallest amount you must pay by the due date to keep your credit card account in good standing. Paying it on time avoids late fees and protects your credit — but paying only the minimum has a real long-term cost.
What paying only the minimum does:
- Keeps your account current — no late fee, no negative mark for a missed payment.
- Leaves most of the balance unpaid, so interest keeps accruing on what is left.
- Stretches repayment out for years. Because interest compounds, a balance paid at only the minimum can take a very long time to clear and cost far more than the original purchases.
- Keeps your credit utilization high, which can weigh on your credit score.
The minimum payment warning: by law, your monthly statement includes a disclosure showing how long it would take and how much it would cost to pay off the balance making only minimum payments — it is worth reading.
What to do instead:
- Pay the full statement balance whenever you can — that avoids interest entirely.
- If you cannot pay in full, pay as much above the minimum as possible; every extra dollar goes against the balance.
- If high-interest debt is building up, look into a balance transfer or contact RMO to discuss options.