What is a minimum payment?
Making the most of your monthly credit card payments
When you have a credit card, you’re expected to pay off at least some of your statement balance every month.
The lowest amount you’re allowed to pay is called your minimum payment.
- This can change from month to month as your statement balance changes.
- Always pay at least this minimum by your due date, or you could end up paying fees, losing any promotional offers and affecting your credit score.
- To clear your statement balance sooner and prevent interest from building up, it’s always better to pay more than the minimum if you can.
As a credit card holder, every month you have three options...
We don’t recommend making only your minimum payment every month. In fact, we’ll often contact customers who regularly do this to offer some advice and help if needed.
Make the minimum payment
Starting at £84 and reducing over time.
Time taken to clear balance
28 years and 3 months
Interest paid
£5,214
Total paid
£8,214
It’ll cost you the most
Fix your payment
At £84 per month.
Time taken to clear balance
4 years and 10 months
Interest paid
£1,866
Total paid
£4,866
It’ll cost you less
Increase your payment
To £124 per month.
Time taken to clear balance
2 years and 9 months
Interest paid
£981
Total paid
£3,981
It’ll cost you the least
Worried about an upcoming payment?
If you’re having a hard time managing your money, don’t hesitate to get in touch with us. We’ll talk everything through with you, look at your products and services and even help you consider your best options.
Frequently Asked Questions
-
The most common and safest way to pay every month is with a regular Direct Debit.
This way, you won’t run the risk of forgetting to make a payment, being charged any late fees or losing a promotional rate.
In months when you can afford to pay more than your minimum amount, you can
also make additional payments online, on the Mobile Banking app or by in-branch bank transfers, cheques or cash. -
All credit card providers calculate minimum payments differently. If you’re a Lloyds Bank customer, in general your minimum payment is either 2.5% of your balance plus any interest and fees or £5 – whichever is higher. Even if you have a 0% promotional offer, you need to make the minimum payment each month.
Below are two simple examples showing a customer’s minimum payments if they are currently on a promotional offer giving them 0% interest for a 12-month period.
Example 1
Let’s say you have a balance of £2,000.2.5% of this is £50, so your minimum payment is £50.
Example 2
On the other hand, say you only have a balance of £199.2.5% of this is £4.98, so your minimum payment this month is £5.
Where next?
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.