Is it bad for your credit to only pay the minimum?

Is it bad for your credit to only pay the minimum?

Total credit card payment

The minimum payment is an option that seeks to facilitate a contribution to your debt, in those situations in which it is not possible for you to make the payment for the month. If you opt for the minimum payment, you keep up to date with your debts, avoid late payments and fees associated with non-payment of your credit card. Be careful, it is not a perfect solution, because the minimum payment only covers a fraction of the capital (1/36), and the interest, expenses and commissions; reducing your debt in a low proportion.

Therefore, by paying a higher amount than the minimum, you pay your debt in less time, you have more available balance to make new purchases and, above all, you maintain a good behavior in your payments.

Use the minimum payment option only when it is not possible for you to make the payment for the month. Know your payment capacity: take into account your income, calculate your monthly budget and what expenses you can commit to each month. It is convenient that your monthly payments do not exceed 30% of your available income. Avoid over-indebtedness.


It is important that before you choose a credit card you compare the different options that exist in the market. In addition to this, also consider your payment possibilities, since this factor will also influence your debt. According to Condusef and Resuelve tu Deuda, your payments should not exceed 30% of your monthly income; for example, if you pay off your debt before or on the corresponding payment date, the most convenient option is to look for a plastic with the best annuity, but if you pay only the minimum, the best option is to acquire a card with a low interest rate. If you tend to be late and do not pay even the minimum on occasion, you can look for a card with a low Total Annual Percentage Rate (CAT).

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The National Commission for the Protection and Defense of Financial Services Users reported that in the July-September 2021 period, the total number of claims related to retirement savings administrators (afores) amounted to 2,482.

Interbank minimum payment

So our mission in this post is for you to learn what it means, what banks take into account to calculate it, and what consequences you will face if you decide to go for this payment to cover your plastic balances.

Opting for the Minimum Payment is very attractive, as it is the option that offers you to disburse less money at the time; however, it is also a trap that will cause the balance on your card to become a “snowball”. Why? Because of the way it is calculated and applied.

Before deciding whether or not you want to make the minimum payment on your card, you should know that there are two important dates related to your credit. These are the cutoff date and the payment deadline.

And why do we say that the Minimum Payment is a trap? Well, because, as you could see in the practical example, you would be applying a payment of only 150 pesos to your debt and almost 70% would be used to pay interest.

If you make it a habit and keep using your card, you will create the “perfect storm”, since your debt will grow every month and the Minimum Payment will increase until your payment capacity will not allow you to cover even this amount.

What happens if I pay more than the minimum on my card?

It can be used for payments at affiliated establishments, such as supermarkets, department stores, pharmacies, hospitals, etc.; you can also make purchases online or by phone, make hotel reservations, withdraw cash at ATMs, pay for services automatically, such as cell phone and cable services, among others.

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It is determined by your income level, your credit history, i.e. if you have previously used another type of credit such as an auto mortgage or a commercial credit card and if you have paid on time as well as if you have more credit cards.

The information appears in your account statement properly itemized. If you have any doubts, you should go to the nearest bank branch or call your bank’s Call Center.

No, the establishments that do this are engaging in a discriminatory practice towards credit card users, so you should inform the bank to which the terminal belongs so that it can call the attention of your establishment.