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You must be familiar with the term minimum payment – it’s the amount of money you need to pay to your credit card issuer each month if you don’t want to be hit with a late fee or penalty interest rate. More often than not, the minimum amount due is a fraction of the balance that exists on your credit card. However, unless you know how to calculate the minimum payment due, it can be difficult to budget for it, because the amount usually changes each month. How is the minimum payment on your credit card calculated? Your credit card agreement contains details as to how minimum due is calculated, or you can contact a customer representative to understand it. Usually, the amount is calculated using one of the three methods listed below. Percentage of balance If you owe a significant amount at the end of your billing cycle (usually greater than $1,000), the minimum due is a percentage of your balance (this can be anything between 1% to 5%). Some issuers use a slightly different method to arrive at the minimum amount due. They calculate a certain percentage of your existing balance (before finance charges), interest charges for the month, and applicable fees. Fixed amount If your balance, at the end of the month, is somewhere between $25 and $1,000, then you may have to pay a fixed dollar amount as the minimum due. There is a fixed floor for minimum payments, so if the calculated minimum payment is less than that floor, you may be charged the floor amount. The amount of balance you owe If the balance owed by you is less than $25, it is probably less than the floor amount determined by the issuer for minimum payments. In that case, your existing balance becomes the minimum amount due. Why your minimum amount may increase from one month to the next Of course, as your existing balance increases from month to month, your minimum payment due will also increase, provided it is being calculated as a percentage of your pending balance. However, the amount may also increase due to factors like a hike in interest rates, or an increase in the percentage used for calculation due to elevated credit risk. If you were late on a previous payment, or if you’ve spent more than the limit available to you on your card, then also your minimum payment amount may increase. Minimum payments are useful if you are short on cash during a certain month; however, you should never make it a practice to pay just the minimum due on your card every month. If you do, you’ll find that balance due on your card continues to increase – in fact, it may reach such levels that it negatively impacts your credit score. The minimum payment mostly consists of the interest due on your balance, plus a small amount of principal. So, if you want to reduce credit card debt quickly, you must pay down as much of your balance each month as possible. $50,000 - $250,000 of unsecured credit at 0% interest At Fund&Grow, we offer individuals with good credit the opportunity to obtain $50,000 - $250,000 of unsecured credit at 0% interest through creative credit card financing. Available for a period of 6, 12, or 18 months, this amount can be used for anything, from funding a small business to providing a down payment on a property. All you need to do to get these funds is call us at (800) 996-0270, and we’ll make all your financial dreams come true. Popular Posts Instantly Pre-Qualify![]() Signup for our newsletter
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The Fund&Grow team is committed to helping individuals and businesses get capital by gaining access to credit and funding. Since 2007, Fund&Grow acquired over $1 Billion in Business funding with clients from all types of industries allowing them to achieve their goals.
"Fund&Grow was created to progress business. More importantly to support business owners
while they lead the way towards innovation." - Ari Page CEO of Fund&Grow
Ari Page, Mike Banks, and the Fund&Grow team want to help others gain access to credit
despite the ambiguous lending climate. Many feel ripped off by the bank bailout and wonder
why they can't use the system to their advantage the way the banks did. If you have good
credit, the Fund&Grow program will get you the funds you deserve.
All loans are subject to lender approval based upon credit criteria. $50,000 to $250,000 in business credit is for highly qualified clients over the term of the membership with multiple credit batches and/or lines. Introductory rates of 0% apply to purchases and/or balance transfers after which it reverts to an interest rate, which varies by lender as disclosed in the lending agreement. Fund&Grow is not a lender.
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