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What Does "Minimum Due" on a Credit Card Mean?
The minimum due is the smallest amount you must pay by the due date to keep your credit card account in good standing and avoid late payment fees.
It’s usually 5% of your total outstanding balance, but paying only this amount comes with hidden costs.
What Happens If You Only Pay the Minimum Due?
1. High Interest Charges Pile Up
You’ll be charged interest on the remaining unpaid balance
Interest rates on credit cards can be as high as 36%–48% per year
No interest-free period on new purchases until full dues are cleared
2. You Fall Into a Debt Trap
Paying the minimum keeps your account active but builds long-term debt
If you continue spending, the debt can grow exponentially
3. Your Credit Score May Drop
Even though you're avoiding late fees, a consistently high utilization ratio can negatively affect your CIBIL score
4. You Stay in a Never-Ending Cycle
Most of your payment goes toward interest, not principal
This results in longer repayment periods and more money lost
⚠️ Example: A ₹50,000 outstanding balance, if you pay only ₹2,500/month (5%), can take over 3–5 years to clear — costing you ₹30,000+ in interest!
What Should You Do Instead?
✅ Always try to pay the full amount due
✅ Avoid using your credit card for non-essential spending
✅ Set reminders to avoid missing payment dates
✅ Use tools like EMI conversion or a low-interest personal loan from Vizzve Finance to consolidate your dues
How Vizzve Finance Can Help
Struggling with growing credit card debt? At Vizzve Finance, we help you:
👨⚖️ Consolidate high-interest debt with low-interest loans
📉 Lower your monthly burden via EMIs
🔄 Regain control of your finances with expert guidance
🧠 Pro Tip: Switching to a Vizzve personal loan to clear card dues can cut your interest cost by half or more!
Final Thoughts
Paying just the minimum due on your credit card might feel like a relief in the short term, but it’s a dangerous financial habit that can lead to massive interest costs, a damaged credit score, and debt traps.
Choose smarter repayment options with Vizzve Finance — and protect your financial future.
Frequently Asked Questions (FAQs)
Q1. Will paying the minimum due hurt my credit score?
Yes, if you do it regularly, it increases your credit utilization ratio and reduces your score.
Q2. Is paying minimum due better than missing the payment?
Yes, it avoids late fees and penalties. But interest will still apply on the unpaid amount.
Q3. Can I convert my balance into EMIs?
Yes, most banks offer EMI options — or you can opt for a debt consolidation loan from Vizzve.
Q4. What is a safe credit utilization rate?
Keep your usage under 30% of your credit limit to maintain a healthy CIBIL score.
Q5. Does Vizzve offer credit card bill repayment loans?
Yes! We offer quick personal loans to help you clear card dues at much lower interest rates.
Published on : 22nd July
Published by : SMITA
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