Minimum repayment - Bad credit cards
Credit card minimum repayments
From 1 April 2011 the rules on credit card minimum repayments changed. For customers getting a new credit card agreement the monthly minimum repayment must be AT LEAST:
- 1% of the debt
- Plus the amount of interest that appears on the statement
- Plus charges for missed payments, going over limit or defaults
- Plus any annual fees
This is a minimum, so card companies can charge more if they wish.
Some card providers (including Barclaycard, MBNA and Santander) have applied these changes to existing cardholders too.