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Should You Opt To Pay The Minimum Dues On Your Credit Card

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Paying the minimum due amount on your credit card bill, is one of the biggest blunder you can ever make. An occasional payment is acceptable only if you are short of funds, but forming this into a habit, can be financially detrimental.

What are minimum dues on credit card bill

Your credit card bill comes with the total dues and the minimum dues. Total due is the entire amount you owe on your credit card which is the total amount you have utilised on your credit card for that month. Minimum due, is the amount you have to pay to steer clear of any late payment dues. It is usually dependent on the bank but they charge a small part of the total due. For e.g. if your total credit card dues for the month of November is Rs.15,000. Your minimum due would be around Rs.1500 depending on the banks policy.

Why should you not pay only minimum dues

Making a habit of paying minimum dues on your credit card can be damaging and disastrous on your financial health. Credit card debt is interest free only for one billing cycle, after which the interest is charged. At the end of the cycle, the unpaid balance amount is charged an interest rate, till cleared. The credit card interest rate is usually high between 15- 30% per annum, which adds up to a much bigger amount than you thought you would.

When you only pay minimum dues, the burden of your bills will be lighter for a short while, and you will feel relieved. However, what you need to be aware that the interest will add up to the unsettled amount due. If you make a habit of only paying minimum dues, here is what you can expect-

  • You’ll be asked to pay at a higher interest rate When only your minimum dues are paid for some months in a row, you’re telling your bank that you are unable to keep up with your bills. This is a risk factor for the bank, as a result it will start charging you a higher interest rate for any future debt. The higher interest rate is bank’s way of compensating for the risk it is taking by still holding your debt.
  • Your credit score will lower The longer you are unable to repay your debt, the more interest gets piled up. With more interest piling up, your debt too increases. This will impact your credit resources, thereby affecting the amount of credit you have used from the total amount available. A high credit utilization can bring your credit score lower.
  • Your debt will start mounting up The more prolonged time you take to clear your previous uncleared dues, the higher the interest you will accumulate, thereby increasing the debt. This is exactly how one lands into the debt trap, where your debt starts to snowball and keep on multiplying. Every financial advisors warn you about and advises you on how to avoid this mess.


Though these sound quite scary, it is completely escapable. Making full payments in time can avert any surmounting debts and thereby getting caught in any debt trap. Be in control of your financial health, apply for the best credit cards and use the credit card responsibly. Credit cards are a boon, don’t turn it out to be a curse. It helps you make huge savings with various offers, discounts, complimentary benefits, and many other rewarding features.

Additional Reading – Here Are Some Hidden Details About Your Credit Card

Check your maximum Credit Card Eligibility


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