Maria Adams, Credit Cards Moderator
@m_adams
It could take several years to pay off your credit card by making minimum payments. The exact amount of time depends on how much your issuer’s required minimum payment is and what your credit card’s interest rate is. For example, if your credit card debt is $2,000 and the minimum payment is the greater of 1% or $35, you would pay off your card in more than 9 years. That’s the timeframe, assuming your card has the average APR of existing credit card accounts (16.27%).
If you’d like to get a more precise estimate for your own credit card, you can follow the steps below.
How to Calculate the Payoff Date with Minimum Payments
- Go to WalletHub’s credit card minimum payment calculator.
- Input your card’s balance, interest rate, minimum payment percentage, and minimum dollar amount for payments.
- Click the blue “Calculate” button.
- Look at the results to see the time until the payoff, how much interest you’ll pay, and a graph showing the payoff progress over time.
You can also look at your monthly credit card statement to see exactly how long it will take to pay off your balance with only minimum payments. Credit card issuers are required by law to disclose this.
If you make at least your credit card’s minimum payment by the due date, you will avoid late fees and penalty APRs. However, any unpaid balance carried between months begins to accrue interest. Plus, not paying in full gets rid of the card’s grace period. So, if you plan on making only the minimum payment, make sure that you get a credit card with a low APR.
People also ask
How long would it take to pay off a $10,000 credit card balance if you only paid the minimum?
It would take more than 26 years to pay off a $10,000 credit card balance if you only paid the minimum, assuming an interest rate of 15% and a minimum payment of 2% of the balance. The exact amount of time depends on how much your issuer’s required minimum payment is and what your credit card’s interest rate is.
For example, with an interest rate of 15% (around the average for existing credit card...
read full answerIs it better to pay off your credit card or keep a balance?
It’s better to pay off your credit card than to keep a balance because paying the card off will save you money on interest. Credit card companies charge interest when you don’t pay your bill in full every month, but you’ll enjoy a grace period with no interest if you always pay your full statement balance by the due date.
Some people think you need to carry a balance in order to see positive information...
read full answerIf I pay the minimum credit card payment, do I get charged interest?
If you pay the minimum credit card payment only, you do get charged interest. Paying the minimum amount required each month merely keeps your account in good standing, which saves you from credit score damage but not interest charges. The only time you wouldn’t owe interest on a balance that remains after paying the minimum is during a card’s 0% introductory APR period. But without a 0% APR, you can only avoid interest if you...
read full answerDid we answer your question?