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Credit Card

What is the minimum amount due of a credit card?

Key Takeaways

The ‘minimum amount due’ on a credit card is a percentage of the total outstanding credit card balance of an individual.
Paying the minimum amount due helps avoid late payment fees and prevents immediate negative reporting due to missed payments.
It is not advisable for credit cardholders to only pay the minimum amount due, as it can lead to an accumulation of interest, leading to a more expensive repayment of dues.
To avoid late payment fees, cardholders can automate their credit card bill payments, pay the minimum amount due, and regularly check their credit card statements.

20 Jun 2026 by Team FinFIRST

Minimum Amount Due in Credit Card - Complete Guide

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When choosing a credit card, most people focus on interest rates and rewards. But there is one more term worth understanding before you start spending: the minimum amount due.

The minimum amount due is the lowest amount you must pay by the due date to avoid late payment fees and keep your account in good standing. You can find it on your monthly credit card statement along with your total outstanding balance and payment due date.

To never miss a payment, set up autopay on the IDFC FIRST Bank Mobile Banking App and your minimum due will be cleared automatically every month.

What details does a Credit Card statement provide?

Know how a Credit Card works in India

What is the minimum amount due on a credit card? 

The minimum amount due is a percentage of your total outstanding balance that you must pay by the due date to avoid penalties and keep your account in good standing.

Example:

If your outstanding balance is ₹30,000 and the minimum payment percentage is 5%, your minimum amount due is ₹1,500.

Paying ₹1,500 helps you avoid late payment fees for that cycle.

The remaining ₹28,500 is not written off. It carries forward with interest applied from the transaction date.

Not paying even the minimum amount due will negatively impact your credit score.

The minimum amount due is not a way to clear your debt. It is simply the floor below which you should never fall.

How is the minimum amount due on a credit card calculated?

The minimum amount due is a percentage of your total outstanding balance. For example, if the minimum payment percentage is 5%, here is how it would be calculated across different balance amounts.

Total Outstanding Balance	Minimum Payment Percentage	Minimum Amount Due
₹10,000	5%	₹500
₹20,000	5%	₹1,000
₹50,000	5%	₹2,500

The higher your outstanding balance, the higher your minimum amount due. If you pay only the minimum amount due and carry the remaining balance forward, interest charges will apply on the unpaid amount. Late payment fees apply separately only if the minimum amount due is not paid by the due date.

How does the minimum amount due on a credit card work?

The minimum amount due is a fixed percentage of your total outstanding balance at the end of every billing cycle, set by your bank in advance.

What happens when you pay the minimum due:

You avoid late payment charges for that billing cycle.

Your credit score is not negatively impacted in the short term.

Your account stays in good standing with the bank.

What happens to the remaining balance:

The unpaid portion attracts interest from the transaction date.

Most of your minimum payment goes towards clearing interest, not the principal.

Your principal balance does not reduce unless you pay more than the minimum.

The importance of paying your credit card’s minimum amount

Paying the minimum amount due on your credit card is essential to keep your account in good standing and avoid unnecessary complications. It acts as a safety net when you are unable to pay the full outstanding balance in a billing cycle.

Avoid late payment fees
Paying at least the minimum amount due on time means you never have to worry about late payment charges adding to your outstanding balance.

Protect your credit score
Timely payment of the minimum due ensures your repayment record stays positive, which is crucial for maintaining a healthy credit profile.

Keep your account in good standing
Paying on time helps you maintain a good relationship with your bank and keeps your credit card active without restrictions.

Manage your credit utilisation
Staying on top of your minimum payments helps you keep your credit utilisation ratio in check, which has a direct impact on your credit score over time.

Risks of paying the minimum amount due

You might be faced by several financial risks if you choose to only pay the minimum amount due on your credit card –

Your creditworthiness takes a hit: One of the benefits listed in the previous section is ‘no impact on your credit score’. If you are wondering how this can also be a disadvantage, please note that paying only the minimum amount due does not impact your creditworthiness in the short term. However, if your outstanding balance piles up over time, your creditworthiness is negatively affected.

Your debt period gets extended: If you only pay the minimum amount due, you will be essentially extending your debt period. This can lead to your credit card becoming a long-term financial burden, which might impact your ability to achieve other financial goals.

You might end up paying more than the original amount borrowed: Paying only the minimum amount due can lead to an accumulation of interest. By doing so, you can end up paying more than you had borrowed.

Your credit utilisation ratio might increase: One of the results of maintaining a high balance is an increased credit utilisation ratio, which also negatively impacts your credit score.

Tips to avoid late payment fees

Here are some tips you can follow to avoid late payment fees and also improve your credit score –

Pay more than the minimum amount due: Always aim to pay more than the minimum amount due every billing cycle. Paying the full outstanding amount is ideal, but if that is not possible, paying even a little above the minimum helps reduce your principal faster and limits the interest you accumulate over time.

Regularly check your credit card statements: Your credit card statements contain important information such as credit card balance, the minimum amount due, and interest rate. You must check these statements to be aware of your minimum amount due and overall outstanding balance.

Automate your credit card payments: The best way to make sure you don’t miss any payment is by automating your credit card EMI payments. IDFC FIRST Bank customers can do this using the Autopay feature on the IDFC FIRST Bank mobile banking app.

Monitor your spending patterns and budget accordingly: Efficient budgeting can help you plan for your credit card bill repayments more effectively.

Conclusion 

Understanding the concept of the minimum amount due on your credit card is essential for maintaining financial discipline and a strong credit profile. While paying this amount can help you avoid late payment fees and safeguard your credit score in the short term, it is not a long-term solution. To prevent accumulating interest and prolonged debt, always aim to pay more than the minimum due or the total due amount. IDFC FIRST Bank's online payment features, such as autopay, internet banking, and UPI, can simplify timely payments, ensuring financial well-being. Enjoy exclusive privileges with IDFC FIRST Bank credit cards without the worry of missing out on payments.

What is the minimum amount due on a credit card?

The minimum amount due is the lowest amount you must pay by the due date to keep your credit card account in good standing. It is usually a small percentage of your total outstanding balance, along with any EMI instalments, interest, and applicable charges. Paying this amount helps you avoid late payment penalties.

How is the minimum amount due on a credit card calculated?

It is generally calculated as 5% of the total outstanding balance, and includes EMIs, interest charges, fees, and GST, if applicable. For example, if your total outstanding is ₹20,000, the minimum due may be around ₹1,000, excluding other charges. The exact calculation may vary by issuer.

What happens if you only pay the minimum amount due on your credit card?

If you pay only the minimum amount, the remaining balance is carried forward to the next billing cycle. Interest is charged on this unpaid amount from the transaction date, increasing your overall debt. Over time, this can lead to a higher financial burden due to compounding interest.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.