Credit Card Bill Payment Tips: Is it correct to pay the minimum amount due or does it have some disadvantages? Let us tell you all the important things related to this.

The use of credit cards has been increasing a lot in India for the last few years. In the year 2024, the number of credit card holders in India has touched 10 crores. Now whether people want to buy a phone or TV. Or buy anything else. People buy more by using credit card.

After using the credit card, you have to pay its bill. While paying the credit card bill, you see two amounts. In which one you see the total outstanding. While the other you see the minimum amount due.

Total outstanding means the amount spent on your credit card in a month. Its full bill. So that is the minimum due amount. Which you have to pay by the last date of bill payment to continue using the credit card.

Often people have a question in their mind whether it is right to pay the minimum amount due or does it have some disadvantages. First let us tell you what is minimum amount due. Actually this payment is paid when you do not have money to pay the entire bill.

Generally the minimum amount is 5% of your total amount. But if your total outstanding is more then the minimum amount due can be less. By paying the minimum amount due, you do not have to pay extra penalty. Which is imposed when you miss paying the bill.

But by paying the minimum amount due, you suffer a loss. In this, after the amount you pay, you have to pay 3% to 4% monthly interest extra on the remaining amount. That is, 30% to 40% extra interest has to be paid in a year.

Paying the minimum amount due is right when you have no other option. But if you are in a position to pay the entire bill, then you should pay the entire bill. This way you do not have to pay extra interest. And your credit card limit also remains full. And your credit score is also not affected adversely.