How do you figure out the monthly payments for Credit Cards?
I’m transfering 3 Credit Cards to just one with 0% for 6 months.
After talking to a useless customer service rep, I have yet to figure out how to calulate my new monthly payments before I transfer.
I was always told to divide the balance by 48 months.
Anyone know for sure?
Tags: Cards, Credit, figure, Monthly, Payments
Every card is different.
Look at the terms of service for the new card. It should have the minimum monthly payments listed. It is usually something like “Minimum due is 6% of balance OR $25 monthly, whichever is greater.”
since it’s 0% for 6 months only take your total and divide it by 6 that will give you a payment amount that will pay off during the 0% period . . the minimum payment is usually based on a percentage of what you owe . . you’ll need to ask your creditor what rate they use. , always pay more than the minimum payment .
best bet: pay 1/6 of the balance each month, so you don’t pay any interest
minimum payments are usually 2% of the balance–but those keep you paying for 20-30 years
Usually minimum payments on credit cards are between 1% and 4% of the total outstanding balance, with a minimum payment being between $10 and $25. The exact numbers are in every card’s terms & conditions. Dividing by 48 works if the minimum payment is 2% of the balance (1/48 is approximately 2%). The exact way is to multiply by the percentage.
If this is a Citibank card, you’ll be better off paying more than the minimum payment if you want to apply for more cards from them in the near future (because their proprietary internal scoring system keeps track of your payments). Don’t know if other companies pay as much attention to this as Citi.