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.