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Credit Card 101

How Credit Card Minimum Payments Work

To avoid paying interest, you typically have to pay your balance in full on or before your due date. However, the credit card issuer usually doesn’t require you to pay back all of what you owe at once. You must pay at least the minimum payment by the due date to avoid a late penalty. Credit card issuers vary when it comes to how they determine your minimum balance, but you can find it in your credit card terms.

It’s important to always pay at least the minimum amount on time each month to maintain a good credit history and avoid late fees.

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