 TITLE: How Is Your Credit Card Minimum Payment Calculated? CONTENT: How Does Making the Minimum Payment Affect My Credit?\n-----------------------------------------------------\nYour credit scores will not be directly affected by paying the minimum amount on your credit card each month, and making on-time payment each month can actually help your credit health overall. Payment history is the most important aspect of your credit scores, and even one late or missed payment can have a negative impact on your scores—so if you're at least paying the minimum on your bill, your payment history shouldn't take a dip.\nPaying just the minimum, however, may impact your credit utilization ratio, depending on how much revolving debt you have. Credit utilization is calculated by dividing your total balances by your total available credit. Experts recommend maintaining a utilization rate under 30% to avoid negatively impacting your credit scores. By paying the minimum, your total revolving debt will go down at a slow pace and won't do much to reduce your credit utilization.\nPaying only the minimum each month could cost you quite a bit when interest is factored in and compounded over time, so try to pay more than the minimum when you can. If you can only afford to pay the minimum amount, however, do it so you avoid any late or missed payments.\nIf you're looking to pay off your credit cards, or want to learn more about your current credit card debt, consider getting a free copy of your Experian credit report and scores from Experian so you know what's in your credit file. END