Minimum payment
The smallest amount you must pay on a credit card or loan by the due date to keep the account in good standing.
Card issuers often set the minimum as a small percentage of the balance plus interest, with a floor such as $25 or $35. Paying it avoids late fees and keeps the account current.
Paying only the minimum is slow and costly, because much of each payment goes to interest. Your card statement must show how long payoff takes at the minimum and how much interest that costs.
Example
A $3,000 balance at a 24% APR builds about $3,000 × 24% ÷ 12 = $60 of interest in a month. A $75 minimum payment puts only $75 − $60 = $15 toward the balance.